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mortgage rates: Credit Market Update For The Week - Bond Market Dislocates - 10/11/08 05:35 PM
Sorry, I didn't get a chance to do updates during the week, things were moving so fast that I barely had the time to keep on top of them myself. Pretty much everybody is fixated on the "crash" in the stock markets with major US indexes plunging about 17% on the week, but equity markets are just a symptom, it's important to look at the cause.
The deterioration in the credit markets on a daily basis was simply stunning, and resulted in a near lock down of both intrabank lending and financial commercial paper markets by the end of the week.
… (32 comments)
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mortgage rates: Fed target rate down, mortgage rates up - 02/02/08 01:05 AM
So over the last 2 week the FED has cut their target interest rate a full 125 basis points and credit demand has plummeted off a cliff. Guess what 30 year mortgage rates are pretty much unchanged from a week ago after initially dropping after the cuts. Below is a chart showing the relationship between the effective funds rate (which the FED tries to hold to the target), the ten year treasury and 30 year mortgage rates. It also shows the spread between the 30 year mortgage rate and the effective funds rate (wrongly labeled as FFR on the chart)
This … (10 comments)
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mortgage rates: Ten year treasury hits multi-year low - 01/10/08 10:54 AM
Yesterday the ten year US treasury bond hit a of 3.75%, a rate that hasn't been seen for since early 2004. Everything else being equal this should slightly bring down fixed mortgage rates over the next several weeks, as they tend to correlate well to the ten year. So why is this occurring? Some people will try and make the correlation to the FED lowering their target rate but it really doesn't have that much to do with that. In fact the ten year has tended to rise immediately after the FED lowers, as it gets people in the credit markets … (11 comments)
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mortgage rates: My take on the FED rate cut and mortgage rate effects - 09/19/07 12:32 PM
As pretty much everybody knows the FED cut the overnight lending rate by 50 basis points as well as the rate at the discount window 50 basis points yesterday. The question is, what does it actually mean and what will it accomplish.
My take on the cut
Personally, I was very surprised at the cut, in my mind it was even split between the FED holding steady and a 25 basis point cut. The reason being is that we are facing some very significant inflationary pressures right now ($82/barrel oil anyone) and also the US dollar which is hanging precariously at all time lows. Interest rate … (2 comments)
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Matt Heaton
Bothell,
WA
More about me…
Timu Corp - CEO, ActiveRain - Co-founder
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My ramblings about growing ActiveRain, the real estate industry and something I follow very closely, credit markets. Why "The ActiveRain Addiction"?
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