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recession: Looking Back And Looking Ahead : March 17, 2008 - 03/17/08 08:30 AM
Mortgage rates fell last week on growing evidence of a recession, but far fewer Americans were eligible to take advantage. 
Mortgage lenders continue to reduce product menus and that is leaving homeowners with fewer mortgage financing options than before.
As an added hurdle, Fannie Mae and Freddie Mac recently added "risk-based" fees on all conforming home loans, subjecting mortgage applicants to higher mortgage rates based upon:
Property Type Credit Score Loan-to-ValueSo, even though mortgage rates moved lower last week, for many homeowners, the cost of homeownership did not.
This week, the biggest scheduled news is the Federal Open Market Committee's Tuesday meeting. 
It's widely … (0 comments)

recession: Recession or Inflation? Even Fed Members Don't Know For Sure. - 03/05/08 07:47 AM
With Friday's jobs report looming, mortgage markets are especially skittish about whether the economy is in a recession, or facing inflation.
Four Fed speakers Tuesday did little to quell the debate:
9:00 A.M.: Fed Chairman Bernanke stayed on message that foreclosures and falling home values are dragging down the economy. 10:00 A.M.: Fed Vice Chairman Kohn said that banks will "face challenges" but will not fail en masse. 1:00 P.M.: Federal Reserve Governor Mishkin said that deflation is more concerning to him than inflation 1:00 P.M.: Dallas Fed President Fisher said fighting inflation is more important than fighting recession.Four speeches, four different perspectives.  … (3 comments)

recession: Looking Back And Looking Ahead : February 11, 2008 - 02/11/08 08:45 AM
Mortgage markets are conflicted about the U.S. economy and the confusion is impacting home buyers.
If you've recently tried to lock a mortgage rate, you've probably experienced it personally. 
On one hand, reports of plunging sales suggest that the economy is slowing more quickly than expected. 
This is recessionary and tends to be good for mortgage rates.  So, some days, rates have been down.
On the other hand, some pundits (including a Federal Reserve official) are saying that recent Fed cuts may stoke inflation in the second half of 2008. 
This is inflationary and tends to be bad for mortgage rates.  So, some days, rates have been … (2 comments)

recession: Which Leads Which Lower: Mortgage Rates Or The Fed Funds Rate? - 01/16/08 10:24 AM
It's a point that's always worth repeating:
Ben Bernanke and the Federal Reserve do not control mortgage rates
This is particularly relevant today as newspapers, television programs, and market pundits post that the U.S. is in the midst of a recession.
The latest evidence supporting that assertion is that Retail Sales grew at its slowest pace since 2002 --  the last time the U.S. was in a recession.
Many people fear recessions, but they are natural parts of a business cycle.  As the nation's protector of the economy, though, the Federal Reserve can weaken a recession's impact on the economy by lowering … (0 comments)

 
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