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reserve: Mortgage-Treasury Spread Hits New Lows - Are mortgages safer now? - 04/05/10 11:51 AM
Mortgage-Treasury Spread Hits New Lows - Are mortgages safer now?
In mid-March, a number of articles were published suggesting that the end of the Federal Reserve's Mortgage Backed Security purchase program might drive mortgage rates somewhat higher, fairly quickly. The Fed had telegraphed this upcoming action very loudly and very clearly since 2009.
The program has had substantial effects on mortgage rates over the past 16 months. It immediately lowered mortgage rates by 1/2% or more, and, over its course, brought 30-year fixed rates to their lowest point ever, at 4.71% in December of 2009. It also had a profound effect … (0 comments)
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reserve: Mortgage-Backed Securities Losing their Stigma - What we can learn from the current Mortgage - Treasury Spread - 06/15/09 01:13 PM
Is there a light at the end of the tunnel? Investors may be suggesting so with the recent surge in the Dow Jones Industrial Average from its March low below 7000 to a recent peak over 8700. Still, some doubt should exist considering the recent economic data hasn't so much indicated the United States economy is getting better, rather that the economy is worsening at a slower pace. Still there is one area, very close to the epicenter of the economy's troubles, that suggests recent changes are achieving their desired results.
In the 18 months leading up to December, 2008, the … (18 comments)
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reserve: Mortgage - Treasury Spread closes sharply in January - is Fed buying bringing stability? - 02/12/09 10:19 AM
In a month which saw the lowest 30-year fixed rates on record, it isn't surprising that the massive groundswell of refinancing we experienced happened. Its consequences could also be seen as quite predictable: lenders, fresh from laying off thousands of employees in 2008, saw their operations grind to a halt as they received an onslaught of mortgage applications. The reprecussions to market interest rates were rather more cryptic, though. By the end of January, the Mortgage-Treasury Spread had closed to its tightest range since September, 2008, closing the month at 2.28%.
The 10-week moving average stayed relatively level at 2.78%, bouyed … (4 comments)
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reserve: Mortgage - Treasury Spread Remains Near Peak for December 2008; Fed Action Awaited - 01/02/09 02:53 PM
The Mortgage-Treasury Spread remained near its highest ever level in December, as investors retreaed into the safest available investments to close 2008. Treasury instruments of all maturities saw one of the biggest demand spikes in their history, a sign that risk tolerance was negligible this month. Throughout the month of December, the spread remained largely unchanged from its December 4th level, closing the year at 2.86%. This is down slightly from the December 4th spread at 2.96% The historic low treasury yields reached in December are instrumental to the high spread, as mortgage rates dropped through the month to historically low … (0 comments)
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reserve: Rates improve sharply - will it hold? - 03/03/08 11:27 AM
Last week was just what many loan officers and borrowers were looking for: a week of sharp improvements in rates. What we saw was a substantial "flight-to-quality" as investors shied away from stocks and moved their money into safer treasury bonds. This was triggered by several reports indicating higher than expected inflation, and reaffirming slow economic growth. Chairman Bernanke's comments to congress also supported the weakening of the economy, but reaffirmed the Fed's commitment to encourage growth.
The challenge is a pheonmenon called "Stagflation".
Stagflation is said to occur when economic growth is shrinking, or stagnating, and inflation is increasing. The challenge … (3 comments)
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reserve: Bernanke speaks to congress - 02/14/08 12:55 PM
Treasury Secretary Hank Paulson joined Federal Reserve Chief Ben Bernanke in congress today, and said that they don't expect the US economy to experience a recession in 2008, rather they see slowing growth, with a total increase of 1.8% over the 2007 Gross Domestic Product increase.
The market was not impressed.
Long-term rates had already started to move higher late yesterday, and they continued today, pushing many quoted 30-year fixed mortgage rates to 6.0% or higher. Meanwhile, the stock market moved lower, with all 3 major indices off by about 1%.
The Chief did indicate he was ready to cut rates … (0 comments)
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Dan Hartman
Providence,
RI
More about me…
Province Mortgage Associates - (401) 263-8655
Address: 10 Davol Sq, Providence, RI, 02903
Office Phone: (401) 490-4400 x 114
Cell Phone: (401) 263-8655
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Dan Hartman's Blog about mortgages, real estate, and the economy in New England, and the United States, especially Rhode Island Rates, Connecticut Mortgages, Massachusetts Rate Locks, and New Hampshire Home Sales. Let Dan leverage his MBA in Finance and experience as a college professor for you!
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