Mortgage Rates PLUNGING! On Trump’s NEW Treasury Secretary PICK!

Hey folks, Dan Trey here with your market update for November 25th, 2024. Some mortgage rates, they were stagnant last week. What are they gonna do this week? I think you're gonna be very pleased because Trump's treasury secretary just got announced Friday right after the close and here's what happened to bond yields. So they came down tremendously. So the bond market's really liking Trump's pick as treasury secretary. Here's what we're seeing right through here. I just, I'll post this newsletter right down below in the description of this video as well as all over my social media. It basically says of all of Trump's political appointees, treasury secretary is the most consequential in the bond markets. And the Senate got the nod on Friday night right after the close. So there's no opportunities to witness a reaction. And then today, the reaction hit and let's see the markets right through here. MBS is right now are up 42 ticks, that is incredible. So if you're new to the channel, let's figure out what all this means. So let's get back to this square one. These are the top six products people use when they're buying their first house. Okay, so what are these rates? What consists of these rates? You have to know that before you understand mortgage rates. So these rates consist of five questions, okay? So mortgage rates, there's a whole bunch of determinations of what creates your interest rate. There's not like a 30 or fixed rate is X. There's a lot of components like what's your credit score? How much money you're putting down? What kind of property you're buying? The rates over here where you're seeing, there's five criteria for these. What are they? Well, the first three are this. This person is a first time home buyer. They're buying a single family home and they're gonna live there, okay? So that's that piece of it. So the next two pieces of this equation is right over here. Let's dive into the survey to see what questions it has and what parameters it has. So these right here that says it's a 75% loan to value and in a 780 credit score. So this means these people are putting down 25%, putting down 25%. Now you don't need that. Most home first time home buyers are using either USDA or VA with it 0% down and then you go to conventional loans, it's 3% down. Then you can move over to FHA with 3.5% down. So we'll help you navigate all this. So these are what these rates consist of. So now let's figure out what determines these rates. So let's get over to it. It's actually a mortgage bond, okay? This is the 10-year treasury where we're looking at. Right here is the mortgage bond that we focus in on every day to figure out what mortgage rates are going on. So you see the differences between this. When you look at a 10-year treasury, it gives you the yield. The yield was 4.4 and it was stuck on there almost all of last week. And it was kind of an anomaly because it was like five trading days in a row. The 10-year treasury is trading it right at 4.40 or 4.41. Then is a Friday closing. As soon as the announcements of treasury secretary bond yields dropped and they continue to drop even through today. So that's what we're seeing right through here. And I'll have that in the newsletter. Here's the reaction right through now with the MBS market. So what you're seeing in the MBS market, this is a mortgage bond. This mortgage bond, basically the yield in this bond is the biggest piece of your mortgage rate. Other than like I was saying, your credit score and what other type of property you're buying. So what this represents is the mortgage bonds price. Okay, so what you have to understand is the price goes up, yields come down. 41 is a pretty darn big move. So we're probably gonna be in the 6%. I know we'll be in the 6% range today at some point. So I'll be back at the closing bell to let you guys know how all that goes. But let's look over to the economic calendar that we have for the week to see if there's more things coming. So today there's really nothing except the two-year auction. Then we have on Tuesday, we have building permits. That's about the rest of that other than consumer confidence. But then on Wednesday, we start getting really the meat on the bone that the Federal Reserve monitors right through here, the PCE. What is the PCE? Well, this is the number one inflation gauge that the Federal Reserve monitors. So you have PCE, GDP, initial jobless claims. You have a whole slew of information coming in on Wednesday. And then Thursday, thank goodness there's a holiday. And then on Friday, we pick back up with really not too much on there. So it's a condensed week with Wednesday being all the data that's coming in this week other than some picks for the secretaries and the cabinet picks for Trump. So that's we're seeing right through there. Let's get to the broader markets. They're doing fantastic as well. You can go across the board right through here. All the equity indices are up. Oil is down and the VIX is down. This is like a Cinderella story today. Let's go over to cryptocurrencies. Did it hit a hundred grand? I don't think so, but it's on its way. You know, it's 97,000. About three months ago, it was 60. So a nice little run there. Let's check with oil, which we did. It is down 2%. That is fantastic. Iranian tensions, fuel supply fears. So that should increase the prices of oil, but today it's not doing that. And let's see the overall bond markets. We have yields coming down as well. So that's what we're seeing in the broader markets right now. So in today's video, latter part of the video, I'll show you how today's market ended. And then tomorrow we're going to talk about housing 2025. So pay attention to those videos. If you have any questions you want me to answer for my 2025 forecast, leave that down below. I'd love to answer those. So that's it for today. My name is Dan Frio. Who am I? Well, I'm actually just a loan officer out here trying to win your business. So if you're out there trying to buy that first house, maybe figuring out ways to finance that first investment property or your move up home, please reach out to us. We'd love to help. And if you're at a high rate, you know, if your rate's seven and a half or higher, you're looking to refinance, reach out to us. We'd love to help you kick the tires and see what those numbers look like as well. So visit us at the rateupdate.com. Here's our website. If you want to apply, put in your application, you click that. If you want to find some grants for first-time homebuyers, please check that out. If you have a loan estimate you want me to review, click there and upload that there. But if you want to schedule a one-on-one consultation with me and my team, just click through here. And this is a new tab that we have. So you can enter a date in there where we can answer any and all questions that you have before you put in that application. So that's our report for today, guys. If you want to reach out to us directly, our information is right down here at the bottom. So check it out. Otherwise, I'll be back today at the closing bell to let you guys know how this, I won't say it's a mess today, how this Cinderella story is playing out today. Thanks for watching. See you later. Bye-bye.