January 2, 2019

Market News

Happy New Year!

The last time the 10 Year Treasury was this low was back in January of 2018!  (It’s like the rest of 2018 never happened.)  With lower rates, higher Fannie and Freddie loan limits ($484k 1 unit, $726k high balance), and non-agency products designed to reach more borrowers; the mortgage industry is poised for a torrid start to the year.  All economists agree that 2019 will see an increase on purchases over 2018.  So with our Purchase Power products, including the super-hot Premier Conventional and our own proprietary Non-QM programs, Nations Direct will be coming in to 2019 stronger than ever!

Stocks are moving lower to begin Wednesday’s trading session as fears mount over slowing global growth.  Weaker-than-expected manufacturing data out of China has investors searching for safety as leading indicators continue to convey a slowdown on the horizon.  Last year was the worst year since 2008 for equities with the S&P500, DJIA, and Nasdaq closing 6.2%, 5.6%, and 3.9% lower respectively.  The S&P500 is currently trading at 2,476.87, 1.29% lower.

Treasuries are moving higher in the AM as the U.S. 10-Yr Note hovers around its lowest yield in 11 months.  The same rising rates, slowing global growth, central banks, trade, tariff, and political turmoil narratives that steered allocations in 2018 will likely remain at the forefront of investor attention throughout the new year.  The US 10-YR Note is currently trading at 2.6593%, 0.0232 lower.

 

Josh Pappert – VP, Capital Markets
Nations Direct Mortgage