Incline Village Real Estate and Community News

May 31, 2017

TAHOE AIRBNB USE UP 50 PERCENT OVER LAST SKI SEASON

Ski resorts weren't the only ones to profit from this year's snowfall totals.

Lake Tahoe-area Airbnb hosts earned $32 million this past ski season, a 50 percent increase from last year, according to a lake-wide report issued by the company on May 3.

But it's not just earnings that went up. Total Airbnb guests in Lake Tahoe jumped 48 percent over last ski season, amounting to 185,000 visitors according to the report. The bulk of the trips made were in December, followed closely by January and February.

"This winter with the epic snow, we were fully booked," said Airbnb host Biren Talati. "We were booked so much, it kind of affected the ability for us to come up.

Talati is a Bay Area resident, who said he's been traveling to Lake Tahoe for years. He purchased a property in Incline Village in December 2015, and credits Airbnb with enabling him to do so.

"With the ability to do Airbnb, it made it affordable for my family to purchase," he said.

Even with this year's record-breaking precipitation that caused road closures and power outages throughout the region, Talati said he has been experiencing high demand for his rental.

"The Bay Area is the most common (visitor origin), but we get people from all over," he said. "It's an international destination."

This past ski season, more than 50 percent of Airbnb visitors in Lake Tahoe were from Bay Area cities, according to the report. Visitors from Los Angeles made up 2.6 percent of Airbnb stays, and travelers from Sacramento made up 2 percent. About 33 percent of visits were during weekdays.

"In a year like this where there was a lot of excitement about the snow, there was definitely a lot of interest and inquiries," said Airbnb host Melanie Meharchand. "I saw an interest in people staying more than just the weekend, so that's the way that I perceived there being a greater demand this year."

Meharchand is a Bay Area resident, who has owned a home near Donner Lake for about five years. She said she and her family used to come up every weekend, but as her kids grew older and had more activities to attend, the family wasn't able to make the drive as frequently. She said they began renting their home on Airbnb about a year and a half ago, and prior to that had done so on occasion on their own.

"The first fear you have is that people are going to trash your stuff, but after that first time I realized it was much like when my friends used the place, except the Airbnb people paid me," she said.

Meharchand said that while getting paid was nice, and helped them make improvements to the house that they otherwise would not have been able to afford, she also just didn't want the home to sit unused.

"It was less about the mortgage for me and more about the thought that I had this resource to use," she said. That kind of appeals to me — the idea that other families could use it (the home) too."

Of the $32 million total earned by Airbnb hosts in Lake Tahoe this ski season, $7.9 million of that went to hosts in Truckee, which received 37,200 guests using Airbnb alone in the last year.

Posted in Community News
May 16, 2017

REAL ESTATE AND MORTGAGE RATES - LAST WEEK IN REVIEW AND FORECAST FOR THIS WEEK

After two sluggish months of sales, consumers opened their pocketbooks in April.

Consumers ramped up their spending at auto dealers, hardware stores and e-commerce outlets. April Retail Sales rose 0.4 percent from the 0.1 percent in March, which was revised up from -0.3 percent. Increased consumer spending could boost economic growth in the second quarter, as it makes up two-thirds of the nation's economic activity.

There was important news on inflation, as the Consumer Price Index (CPI) was up 0.2 percent in April, in line with estimates. The year-over-year number declined to 2.2 percent from 2.4 percent in March, which was Bond-friendly news. When stripping out volatile food and energy numbers, the Core CPI saw a 0.1 percent gain in April, just below expectations. Year-over-year Core CPI also slipped to 1.9 percent from the +2 percent that has been the norm over the past 12 months, which was more good news for Bonds.

Meanwhile, wholesale inflation, as measured by the Producer Price Index (PPI), jumped 0.5 percent in March, above the 0.2 percent expected. Year-over-year, PPI surged 2.5 percent, the largest increase since moving 2.8 percent for the 12-month period ending February 2012.

Inflation is an important measure to watch because inflationary pressures can reduce the value of fixed investments, like Mortgage Bonds, and the home loan rates tied to them.

At this time, home loan rates remain attractive and near historic lows.

If you or someone you know is in the market for a new home or a home refinance, please contact me. I'd be happy to answer any questions about home loan rates and products.

Forecast for the Week

Manufacturing and housing data are sprinkled throughout what may be a less volatile week in the markets.

Regional manufacturing data comes via the Empire State Index on Monday and the Philadelphia Fed Index on Thursday.

Housing Starts and Building Permits will be delivered on Tuesday.

As usual, weekly Initial Jobless Claims also will be reported on Thursday.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve. In contrast, strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond on which home loan rates are based.

When you see these Bond prices moving higher, it means home loan rates are improving. When Bond prices are moving lower, home loan rates are getting worse.

To go one step further, a red "candle" means that MBS worsened during the day, while a green "candle" means MBS improved during the day. Depending on how dramatic the changes are on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.

As you can see in the chart below, Mortgage Bonds reacted to bond-friendly inflation news, regaining some lost ground. Home loan rates remain attractive and near historic lows.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday May 12, 2017)

Posted in Real Estate News
May 12, 2017

INCLINE VILLAGE; A HIDEAWAY WHERE BILLIONAIRES COME TO PLAY.... AND SAVE ON TAXES

Many affluent executives become residents of this picturesque Incline Village before a major liquidity event...

Come for fun in the sun – stay for tax advantages! Incline Village is a little bit of paradise on the Nevada side of Lake Tahoe — the skiing mecca — where on “Billionaires’ Row,” bold-face names like Michael Milken; Larry Ellison, Oracle co-founder; David Duffield, PeopleSoft co-founder; and Gene Pretti, CEO of investment managers Zazove, boast lavish mansions on the big blue lake.

Many affluent executives — especially those in California’s tech and financial industries – prior to a major liquidation event, establish residency in Incline, a tony sun-drenched playground of winter and summer sports. Why do they come? Nevada has no state personal, business or corporate income tax. Besides, Incline Village is a gorgeous place.

 

Incline Village, on Lake Tahoe, offers privacy for celebrities

With the Silver State’s secrecy laws around corporations, Incline has a reputation as a tax haven where investors register shell corporations and set-up residency to escape tax liability. Incline's nickname: “Income Village.”

Posted in Community News
May 8, 2017

REAL ESTATE AND MORTGAGE RATES - LAST WEEK IN REVIEW AND FORECAST FOR THIS WEEK

More hardworking Americans were getting jobs in April, as the labor market bounced back from March.

The Bureau of Labor Statistics reported that 211,000 jobs were created, above the 180,000 expected. The weak March number of 98,000 was revised lower to 79,000. February was revised higher to 232,000 from 219,000. The Unemployment Rate fell to 4.4 percent, the lowest level in 10 years. Within the report, it showed that total unemployment, or the U-6 number, fell to 8.6 percent from 8.9 percent, the lowest since November 2011 before the onset of the Great Recession.

The Fed left its monetary policy unchanged at its May 2-3 meeting, noting there were signs of strength in the labor market and that inflation was near its target of 2 percent. The Fed also said that it felt the weak first quarter economic growth was "transitory."

In housing news, home price gains remain robust. Leading analytics firm CoreLogic reported that home prices, including distressed sales, rose 7.1 percent from March 2016 to March 2017. It was the 62nd consecutive month of gains. From February to March, prices were up 1.6 percent. The year-over-year home price index is now just 2.8 percent below its 2006 peak. Despite weak economic growth, home prices continue to rise due in part to low inventories of homes for sale.

Home loan rates remain attractive, which is positive news in the face of rising home prices.

If you or someone you know is in the market for a new home or a home refinance, please contact me. I'd be happy to answer any questions about home loan rates and products.

Forecast for the Week

Merchants are looking for signs of a Retail Sales rebound when April numbers are released on Friday.

Economic data is on the slow side this week beginning on Thursday with weekly Initial Jobless Claims.

We'll get a read on inflation with the Producer Price Index on Thursday and the Consumer Price Index Friday.

Also on Friday, Retail Sales and the Consumer Sentiment Index will be delivered.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve. In contrast, strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond on which home loan rates are based.

When you see these Bond prices moving higher, it means home loan rates are improving. When Bond prices are moving lower, home loan rates are getting worse.

To go one step further, a red "candle" means that MBS worsened during the day, while a green "candle" means MBS improved during the day. Depending on how dramatic the changes are on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.

As you can see in the chart below, Mortgage Bonds experienced some ups and downs recently. Home loan rates remain attractive and near historic lows.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday May 05, 2017)

Posted in Real Estate News
May 5, 2017

INCLINE VILLAGE GOLF COURSES OPENING SOON!

 

 

2017 opening dates
View this email in your browser
opening dates
Golf season is just around the corner! With the help our amazing grounds crew and some more warm weather we will be playing golf in no time. All opening dates are weather permitting and will include cart restrictions:
  • Championship Course: Back 9 Holes - Friday May 19 
  • The Grille at The Chateau: Friday May 19
  • Championship Course: Front 9 Holes (entire course) - Friday May 26 
  • Mountain Course: Early June TBD
practice opening dates

Practice Facilities

Brush up on your game and start practicing now! Our practice facilities at the Championship Course are set to open on the following dates:
  • Indoor Simulator: open now through May 10
  • Driving Range: Friday, May 12
  • Chipping Green: Friday, May 19
  • Putting Green: Friday May 19

Championship Golf Shop Spring Hours: 9am-6pm daily - 775-832-1146

get golf ready

Register for Get Golf Ready

Are you new to golf or returning after many years? Get Golf Ready is a series designed to teach everything you’ll need to play golf in just five lessons for only $135. We're also offering some Level 2 courses for graduates or golfers who already know the basics.

Register now! Session 1 is May 15-19 and some of the other sessions have already filled up. View full schedule and details online.  
 

2017 Play Passes for Sale

We offer Play Passes for both courses or just one course, for individuals, families and now for couples! View rates and details online

IVGID Picture Pass holders receive special discounts on Play Passes. Login with your IVGID Pass ID to view rates

Purchase at the Championship Course Golf Shop or call 775-832-1146. 
 
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 Championship Course 955 Fairway Blvd & Mountain Course 690 Wilson Way
 Incline Village, NV 89451

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Posted in Community News
May 5, 2017

RISING RENTS OFFER MORE HOME BUYING OPPORTUNITIES

As rising rents sweep the country, the channel between the cost of owning and the cost of renting continues to slim. According to the latest Florida Atlantic University national index, today’s active rental prices make for a great time to purchase a home.

“We are not where we were in 2012, when nearly any purchase was a sound financial decision,” said Ken Johnson, Ph.D., real estate economist and index authors, in a recent press release. “However, overall, we are now in a situation where aggressive marketing from sellers combined with due diligence and sound negotiation from buyers is creating a housing market that’s more in line with what we’ve seen historically.”

The index, called the Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index, shows that 15 of the 23 cities studied are set in buy territory, while another five are only marginally in rent territory. This news only further fortifies the positive outcome of the latest S&P/Case-Shiller Home Price Index, which showed home prices rising at the highest annual increase since June 2014, roughly 5.8 percent year-over-year. Out of the 23 cities studied in the BH&J index, the only urban places to show discouraging market conditions are Dallas, Denver and Houston.

“The scores for Dallas, Denver and Houston have worried us for some time now,” said Eli Beracha, Ph.D., co-author of the index and assistant professor in the T&S Hollo School of Real Estate at FIU. “The last time we saw scores of this magnitude, housing market crashes soon followed.”

The overall verdict seems to be, if you can afford to buy in, the time to do so is now.

To reach their finding, the FAU index incorporated property appreciation from housing markets around the country. This data is joined by rental, maintenance and alternative investment data streams. Together, these factors can indicate when (and why) housing markets might change direction.

Posted in Community News
April 24, 2017

REAL ESTATE - LAST WEEK IN REVIEW AND FORECAST FOR THIS WEEK

Inclement weather during March in the Midwest and Northeast sent a chill in residential new home construction after the unseasonably warm weather in February.

The Commerce Department reported that Housing Starts in March fell nearly 7 percent from February to an annual rate of 1.215 million annualized units, below the 1.256 million expected. February's reading was revised higher to 1.303 million from 1.288 million. From March 2016 to March 2017, Housing Starts were up 9 percent.

Hopefully, the weather will hold for future construction, as Building Permits in March were up 3.6 percent from the revised February reading and 17 percent above March 2016.

Builder confidence remained solid in April, though it did fall three points to a level of 68 on the National Association of Home Builders/Wells Fargo Housing Market Index. The index gauges builder perceptions of current single-family home sales, sales expectations for the next six months and traffic of prospective buyers. Readings over 50 indicate positive sentiment.

The National Association of REALTORS® reported that Existing Home Sales hit their highest pace in over 10 years in March, with sales climbing 4.4 percent from February to a seasonally-adjusted annual rate of 5.71 million units. March's sales pace is 5.9 percent above a year ago and surpasses January as the strongest month of sales since February 2007. However, demand continues to outweigh supply with inventories down 6.6 percent from a year ago.

If you or someone you know is in the market for a home, please contact me. Home loan rates remain at 2017 lows.

Forecast for the Week

First quarter economic growth is expected to be weak when reported at week's end.

Housing data this week comes from the S&P/Case-Shiller Home Price Index and New Home Sales on Tuesday. Pending Home Sales will be released on Thursday.

Consumer Confidence will be released on Tuesday followed by the Consumer Sentiment Index on Friday.

Durable Goods Orders and weekly Initial Jobless Claims will be delivered on Thursday. On Friday, Gross Domestic Product and the Chicago PMI will be released.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve. In contrast, strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond on which home loan rates are based.

When you see these Bond prices moving higher, it means home loan rates are improving. When Bond prices are moving lower, home loan rates are getting worse.

To go one step further, a red "candle" means that MBS worsened during the day, while a green "candle" means MBS improved during the day. Depending on how dramatic the changes are on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.

As you can see in the chart below, Mortgage Bonds reached their best levels of the year in recent days, keeping home loan rates near historic lows.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Apr 21, 2017)

Posted in Real Estate News
April 20, 2017

LAKE TAHOE FILLED TO THE BRIM

Lake Tahoe is full. As of April 17, the lake's surface elevation was 6,227.64 feet — almost 5 feet above its natural rim.

U.S. Water Master Chad Blanchard said his office has been spilling water from Lake Tahoe since Feb. 22 in an effort to prevent the lake's level from rising too high. It's the first time since 2006 that excess water has been spilled from the lake.

"We're already over 200 percent of the average precipitation for Tahoe City for the month of April, with a little bit more to come at least," he said. "So the big year is not letting up."

Blanchard's job is to oversee the distribution of water from Lake Tahoe. Blanchard, who is based in Reno, said water is currently being released at a rate of about 1,200 cubic feet per second (cfs).

“This is the biggest year in history as far as precipitation and snow, and we don’t know what’s going to happen, whether it’ll be one and done or we’ll hang for awhile at the top.”Chad Blanchard-U.S. Water Master

"It hasn't happened in quite a while because of the drought, but it's not that uncommon to have this much released from Lake Tahoe," he said.

The current rate that water is being released from the lake, 1200 cfs, pales in comparison to the amount of water flowing into it, or the "inflow."

"Just today (April 18), alone, the inflow was about 3,100 cfs and we're releasing 1,200," Blanchard said. "Lake Tahoe inflow in a big event, in a flood event, can reach almost 100,000 cfs."

But even though it's been years since the lake last filled, Blanchard said that the 1920s began a period where the lake didn't fill for 20 years. Following that period, the lake remained fairly full for the next 20 years.

"Its very cyclical," Blanchard said. "Typically, when the dry periods ends the lake fills back up rather quickly."

Blanchard said the lake nearly filled in 2011. He calls years like 2006 and 2011 "one and done years," since the lake level rose but the following years were relatively dry. That's unusual looking back at the 117-year record, since most of the time when the lake fills it remains full over the following years.

"This is the biggest year in history as far as precipitation and snow, and we don't know what's going to happen, whether it'll be one and done or we'll hang for awhile at the top," he said.

But Blanchard also pointed out that knowledge of the weather and Lake Tahoe is very limited, since records go back 117 years compared with the 4.5 billion years the Earth has existed. Lake Tahoe, itself, has existed for roughly two million years.

As for the rest of this season, Blanchard said there will be runoff flows from melting snow that could be higher than possibly ever seen, but it will be manageable.

"Right now, all of the snowpack should be melting significantly," he said. "The highest typical snowpack peaks in early April — we're still accumulating at most elevations."

The average snow water equivalent for the Central Sierra, according to the California Department of Water Resources, was 194 percent of normal on April 18. Locally, at the Tahoe City station, the snow water equivalent was reported 98 percent of normal on April 17, with 15.7 inches compared with the April 1 average of 16 inches.

The larger contrast shows in the higher elevations. For example, on April 17 the snow water equivalent measured at Rubicon Peak was 202 percent of normal, with 59 inches compared with the April 1 average of 29.1 inches. Mount Rose Ski Area received the greatest snowfall in the Lake Tahoe Basin this season, with a snow water equivalent of 92.6 inches measured on April 17, compared with the April 1 average of 38.5 or 240 percent above normal.

Blanchard explained that in past years when a large amount of snow has fallen — like 1983, 1995, 2006 and 2001 — snow accumulation often continues into May, rather than stopping in April.

"It's not abnormal, but it seems that it is often the pattern in these big years that the snow keeps accumulating at the high elevations well into May, and then it starts melting," he said.

That means Lake Tahoe will continue to rise, as temperatures warm and thaw the snow into water (inflow), which runs into the lake.

Typically, inflow peaks around June or July, but this year it isn't expected to happen until August because of the amount of snow accumulated and storms haven't let up yet. But when it does peak, the level will then begin to lower as the rate of evaporation increases with temperature and exposure to the sun.

"Basically, the lake will keep rising as long as the precipitation or inflow is greater than evaporation, and that's usually in June," Blanchard said. "It can be earlier in dry years, like May. In these big years it can be late July or early August before evaporation outpaces inflow."

Posted in Community News
April 18, 2017

REAL ESTATE AND MORTGAGE RATES - LAST WEEK IN REVIEW AND FORECAST FOR THIS WEEK

Consumers were holding back on purchases again in March, while home loan rates hit their lowest levels of the year.

Retail Sales fell for the second month in a row, the worst two-month stretch in two years. The Commerce Department reported March Retail Sales decreased 0.2 percent from February. January to February also was revised from the previously reported increase to a decrease of -0.3 percent. These negative numbers could be significant once first quarter Gross Domestic Product is released later this month, as consumer spending makes up two-thirds of overall economic activity. Despite the declines, total sales for the first quarter were up 5.4 percent from the same period a year ago.

Inflation was tame in March on both the wholesale and consumer levels. The Producer Price Index decreased 0.1 percent in March while the Consumer Price Index fell 0.3 percent, the Bureau of Labor Statistics reported. Tame inflation is typically good news for Bonds, as inflation reduces the value of fixed investments. Since home loan rates are tied to Mortgage Bonds, they can also benefit when inflation remains cool.

In other important news, uncertainty over the tensions surrounding global events caused investors to move their money into the safer haven of the Bond markets before heading into the holiday weekend.

At this time, home loan rates have hit 2017 lows. If you or someone you know has any questions, please contact me. I'd be happy to help.

Forecast for the Week

Housing and manufacturing reports will dominate a busy week, along with continued uncertainty around the globe.

Manufacturing data kicks off the week with the Empire State Index on Monday, followed by the Philadelphia Fed Index on Thursday.

Housing numbers will come from the NAHB Housing Market Index on Monday, Housing Starts and Building Permits on Tuesday, and Existing Home Sales on Friday.

The Fed's Beige Book will be delivered on Wednesday.

As usual, weekly Initial Jobless Claims will be released on Thursday.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve. In contrast, strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond on which home loan rates are based.

When you see these Bond prices moving higher, it means home loan rates are improving. When Bond prices are moving lower, home loan rates are getting worse.

To go one step further, a red "candle" means that MBS worsened during the day, while a green "candle" means MBS improved during the day. Depending on how dramatic the changes are on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.

As you can see in the chart below, Mortgage Bonds pushed to 2017 price peaks, driving home loan rates to their lowest levels of the year.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Apr 14, 2017)

The Mortgage Market Guide View...

3 Brain-Boosters on a 30-Minute Break

Taking regular breaks during the workday can lead to lower stress levels and better focus. In the last two weeks, we've shared a few ideas on what you can do to boost brainpower on five- or 15-minute breaks. This week, we offer three options to consider when you have 30 minutes:

Take a class. New ways to continue your education are constantly coming online, and many are a fraction of the costs of attending in person. Coursera and edX offer classes from top universities, while Open Culture links free courses, audio books, e-books and more.

Write thank you notes. Grab some note cards and tell clients or colleagues how much you appreciate them. Thinking about what you're grateful for in others (and letting them know!) is an effective way to ease workday stress.

Plan your weekend. Rather than let the weekend bring what it will, give yourself something to look forward to. Map out a mini road trip or schedule a barbecue with family and friends. Use the time to plan out the menu and send out emails or texts to invite people over.

Get more from your breaks with these great ideas!

Source: Entrepreneur

Economic Calendar for the Week of April 17 - April 21

Posted in Real Estate News
April 10, 2017

REAL ESTATE AND MORTGAGE RATES - LAST WEEK IN REVIEW AND FORECAST FOR THIS WEEK

Headline news made investors (and politicians) jumpy this week, and the average American received a mixed bag of money matters.

Job growth, as reported by the Department of Labor, came in at 98,000 in March, following gains of 216,000 in January and 219,000 in February. Both January and February job numbers were revised downward by a total of 38,000 from initial reports, and the March number was nearly half of what was expected. On a positive note, the Unemployment Rate dropped from 4.7 percent to 4.5 percent from February to March, the lowest in 10 years. Plus, average hourly earnings rose 2.7 percent over the last year, though wage growth slipped from February to March.

In housing news, CoreLogic, a leading provider of data analytics, reported that home prices, including distressed sales, jumped 7 percent from February 2016 to February 2017 due in part to high demand and limited supply across most local markets. Month over month, prices rose 1 percent. Looking ahead, prices are expected to rise 4.7 percent from February 2017 to February 2018.

Jobs data spurred some market volatility, but markets were further agitated by continued unrest in North Korea and Syria as well as March Federal Open Market Committee meeting minutes that revealed the Fed may begin to shrink its balance sheet by the end of 2017 and that some members are worried Stock evaluations are too high.

Mortgage Bonds benefited throughout the week because investors are uncomfortable with uncertainty. Home loan rates are tied to Mortgage Bonds, so when Bond prices improve, home loan rates can improve too. At this time, home loan rates remain near historic lows.

If you or someone you know has any questions, please don't hesitate to contact me.

Forecast for the Week

Inflation numbers are the ones to watch this week as the Fed continues to weigh its 2017 monetary policy options. The Bond markets close at 2 p.m. ET on Thursday and both Stock and Bond markets are closed Friday in observance of Good Friday.

Inflation numbers will be reported in Thursday's wholesale Producer Price Index and Friday's Consumer Price Index.

Also being released on Thursday will be weekly Initial Jobless Claims and the Consumer Sentiment Index.

Retail Sales are scheduled for Friday.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve. In contrast, strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond on which home loan rates are based.

When you see these Bond prices moving higher, it means home loan rates are improving. When Bond prices are moving lower, home loan rates are getting worse.

To go one step further, a red "candle" means that MBS worsened during the day, while a green "candle" means MBS improved during the day. Depending on how dramatic the changes are on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.

As you can see in the chart below, Mortgage Bonds improved to levels seen in January, keeping home loan rates near historic lows.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday, April 7, 2017)

Posted in Real Estate News