Mortgage Rates Are Plunging; Here’s How You Can Profit

adam_woodsMore Government Stimulus:

In an effort to stimulate the economy the Federal Reserve and other Central Banks around the world are keeping interest rates artificially low. This has caused mortgage rates to plunge and housing stocks are a direct beneficiary of lower rates

Earlier this week, news spread that the White House plans help expand home ownership among lower-income buyers by cutting mortgage-insurance premiums charged by the Federal Housing Administration (FHA).

Department Of Housing & Urban Development Wants You To Buy A House (Or Refinance):

Julian Castro, secretary of the Department of Housing and Urban Development, held a conference call with reporters and made the case for more stimulus. Castro said the government plans to cut the fee the FHA charges to guarantee mortgages by -0.5%, to +0.85% of the loan balance. Under the new structure, the FHA projects that 2 million borrowers will be able to save an average of $900 annually over the next three years if they purchase or refinance homes.

Housing Stocks Benefit:

Housing stocks are one of the strongest places in the market that directly benefit from lower mortgage rates. On average, housing stocks have spent the past year and half consolidating a huge run off their 2011-2012 low which is very healthy. One big theme I am watching for 2015 is another leg higher for housing stocks.

Housing ETF: XHB

The $XHB is one of the most popular ETF’s that tracks the housing market. That is a basket of housing stocks and is a pure play on the housing market. The ETF is very liquid- meaning you can easily get in or out at any time the market is open. Another popular way to profit is to buy individual housing stocks.

Housing Stocks:

If you want specific stocks to buy consider joining MidasWave.com. Here is an excerpt from an update we sent to our subscribers earlier this week: 2015 kicked off with a bang! The latest MWA Alert – KITE Pharmaceuticals soared +30% since the alert was triggered less than two weeks ago! We are very happy to report that the Midas Wave Portfolio is doing exceptionally well, handily beating the stock market and is enjoying very large gains. Here is a snapshot of the top 3 holdings in your Midas Wave Portfolio:

MWA 1915

Meanwhile, our biggest loss is only 2.85%! That is an excellent risk/reward ratio…
The MWA portfolio is doing very well considering the market is down in 2015!

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