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interest rates: Low Interest Rates Aren't The Fuel To Drive Real Estate Purchases - 09/09/11 08:33 AM
The Active Rain Real Estate Network isn't the place for political grandstanding, in my humble opinion. The fact is that we have to earn our daily bread based on 'What Is,' not 'What I'd Like It To Be.'
That said, it's been awhile since I was able to fill my daily schedule with appointments for individuals or couples who are:
excited to get prequalified for the purchase of their new home, or excited because they can take advantage of the super-low interest rates and refinance to get their mortgage paid down more quickly. Reaction to 'Job Creation' speech
"Stocks Tumble Worldwide … (5 comments)
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interest rates: PIMCO Betting Against US Treasuries. Interest Rates Are Going Up. - 04/12/11 09:22 AM
When PIMCO bets against US Treasuries, you can bet that interest rates are headed up.
The headline this morning on Bloomberg reads: "Pimco Total Return Cuts Government-Related to Negative, Boosts Cash Assets." PIMCO is the most successful bond trading company in the US. I check Bill Gross's opinion on the bond market daily (when I'm not in Oklahoma working cows.")
Fixed rate assets like Certificates of Deposit will benefit, but mortgage rates will not. Mortgages are set to rise, as they have been doing for the past three weeks.
Even so, astute REALTORS and Mortgage Originators will do well if we … (5 comments)
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interest rates: The Dragon Is Friendly For The Moment: Interest Rates May Hit Lowest Since November 2010 - 03/16/11 11:40 AM
Interest rates may hit their lowest point since November 2010.
The Federal Reserve Bank this morning cancelled their bond auction, catching the Bond Market by surprise. Initially, there was an official "No Comment" on the cancellation by the Fed, but shortly thereafter, the reason was given as "market volatility." I've seen nothing on Bloomberg yet, but expect something shortly.
Of course, the stock market volatility today is sparked by the nuclear situation in Japan.
Demand for the 10 year bond picked up overnight, and then spiked on news of the cancellation of the bond auction. (Interest rates fall when demand for … (9 comments)
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interest rates: Time To Pull Your Head Out Of The Sand: Interest Rates Are Up, Up, Up - 12/16/10 08:58 AM
Interest rates are up, up, up!
Bonds are selling off. Since November 4th, the yield on the 10 year bond has risen more than one full percentage point. That's a big deal, folks.
You'll remember that we started out the month of November with the US Treasury pledging to buy $600 billion in assets. This worked previously, as bond yields fell to historical lows, and buyers were able to buy homes with 30 year mortgages priced as low as 4.000%. It's no longer working.
Both buyers and REALTORS quickly came to rely on mortgages in the low 4s, and many are … (15 comments)
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interest rates: Interest Rates: What's Around The Bend? - 11/01/10 01:40 PM
What's around the bend for interest rates?
Mortgages repriced for the worse this morning, and that's not a surprise in light of tomorrow's midterm elections. What you may not know is that this week has more than a little in the way of news that will affect interest rates. Here's what's happening this week in addition to the Midterm Elections:
1. The Federal Open Market Committee meets on Wednesday, the day after the midterm elections. The Committee is expected to announce a second round of Quantitative Easing.
In plain english, that means that the Fed is going to print more … (54 comments)
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interest rates: Interest Rates: Make Hay While The Sun Shines! - 07/20/10 09:57 AM
Pretty, isn't it? It won't last.
The same is true with the extraordinarily low interest rates available right now.
They won't last.
Don't be a spectator. Jump in and get that low-interest-rate nectar while the getting's good.
Real world conditions
The US has more than $8 trillion in Treasuries outstanding. That's nearly double the amount just three years ago. China, who holds much of our debt, is experiencing a real estate bubble, with values up nearly 12% from a year ago. It's economic expansion is slowing, though, and that's going to be a problem. Europe hasn't figured … (17 comments)
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interest rates: Europe Up More Than Nine Percent: Look For Higher Mortgage Rates Today - 05/10/10 08:15 AM
May 10, 2010 Bloomberg this morning shows the stock market in Europe up more than NINE PERCENT!
Our markets will open in a little more than 90 minutes, and you can look for a rally in stocks after the beating the market took last Thursday and Friday.
Look too for mortgage interest rates to rise today as Mortgage Backed Securities sell off.
Rates are still exceptionally LOW by historical standards, but they won't stay there.
To my REALTOR friends: Make hay while the sun shines! To my BUYER friends: If you like it, LOCK it! I'm Mike in Tucson, your preferred … (4 comments)
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interest rates: What Comes Down Must Go Up: Fed Raises Discount Rate By 50% - 02/18/10 07:03 PM
DON'T WAIT. CALL YOUR REALTOR NOW!
It had to happen. The New York Times news alert headline says Federal Reserve Raises Interest Rate Charged to Banks, In First Move Since 2008.
Is it a big deal? That remains to be seen. If you locked your loan yesterday, be happy. The rate you got isn't available today.
An Example From History (You can't call it a lesson unless something has been learned...)
To put things in perspective, when Jimmy Carter defeated Gerald Ford in 1976, the discount rate stood at 5.25%. Two years prior, under Nixon, it had been higher, at … (86 comments)
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interest rates: 1/27/2010: Quick Mortgage Market Overview - 01/27/10 06:24 AM
Interest rates: Up, Down, or Flat? I'm betting on flat, but that could change with market volatility.
Consumer Confidence numbers out yesterday were a little more optimistic than expected, and the stock market liked that. It doesn't mean we're out of the woods by any measure ~ just that sentiment in the country is a little less dour than the experts thought it might be. There's a fine line between cynicism and optimism.
This morning on Bloomberg: Fed May Take Chance End to Debt Purchases Won’t Hurt Housing. Fat chance! Bernanke's in a tight spot, caught between the perceived need for … (8 comments)
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interest rates: Forget Last Minute Christmas Sales: Grab Good Interest Rates While You Can! - 12/21/09 11:44 PM
While everyone's thinking of the holiday season, interest rates have crept back up. Six months ago, I predicted that rates could hit 6% by Christmas. They're not there yet, but the 10 year bond (an indicator of mortgage rate direction) today closed with a yield of 3.72%, the highest it's been since August. It's headed higher.
Realtors, give your buyers who are fence-sitting a dose of reality. Would they rather buy a home at today's price with a 5.375% mortgage, or hope that purchase prices decline somewhat, while low mortgage rates evaporate?
China's central banker, Deputy Governor Zhu Min, indicated last … (3 comments)
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interest rates: 9/11 - Look For Interest Rates To Be Unusually Good Today - 09/11/09 09:37 AM
9/11 - Look for interest rates to be unusually good today. Here's why:
1. Demand for Treasury bonds is outstripping record supply. The world's on edge as jittery traders see a deteriorating economic and political climate. Yesterday's 30 year bond auction saw bids for nearly three times the 12 billion bond offering. What that says is open to interpretation, but I believe the Iran / Israel potential for confrontation is a driver.
2. President Obama predicted unemployment above 10% for 2010's first quarter. That number, unthinkable to the administration only three months ago, has the potential to rise even further.
Forget … (8 comments)
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interest rates: Bond Auction Disappoints; Long Bonds Tank. (What It Means for REALTORS & Buyers) - 05/07/09 05:53 PM
The bond market anticipates future inflation, and demand today for longer term bonds (10 - 30 year) was much less than anticipated.
The result? Interest rates, after falling to historic lows this past three weeks, are headed back up.
If you're a REALTOR, light a fire under your buyers. If you're a buyer, it's time to jump in. The only thing that I can see pushing bond yields back up (and interest rates down) would be the government stepping in and purchasing bonds.
Don't count on it.
_____________________________
I'm Mike in Tucson, your preferred Tucson, AZ Mortgage lender.Call me if I can … (20 comments)
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interest rates: No Time To Waste On Short Sales; Buy Something You Can Close in 30 Days! - 03/19/09 05:13 AM
Just like this magical rainbow in the middle of a storm, there's a sweet spot emerging right now for buyers, agents and lenders. It's a convergence of price and the cost of money.
Home prices have fallen to levels affordable for buyers across the spectrum.
Today, on the announcement that the Fed plans to buy as much as one trillion dollars of bonds, rates fell. Qualified buyers (for the moment) can borrow purchase money at a fixed rate in the mid fours. Qualified borrowers can refinance existing mortgages.
It's a sweet spot in the middle of a financial storm, and I … (65 comments)
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interest rates: Unintended Consequences: Globally Coordinated Rate Cut Raises Mortgage Rates - 10/08/08 09:41 AM
That's the DOW performance this morning there on the left. News of the globally coordinated cut in interest rates initially propelled the market higher, only to see them fall again. That's usually good for lenders, agents and buyers of real estate.
Lower market, lower mortgage rates. Right? Not this time. The banks are raising rates.
The 10 year bond yield, which more or less predicts moves in 30 year fixed interest rates (not always) rose this morning as traders began to sell bonds in anticipation that this multi-government "fix" might not work.
Here's the reason. This isn't a crisis of fundamentals in … (12 comments)
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interest rates: What Me Worry? You'll Kick Yourself Next Year if You Don't Buy Your Home Now. Here's Why... - 07/19/08 11:07 PM
Now THAT's a worried look. Mom's holding her more than two feet away, but little India (born 2/29) is clearly concerned. I wonder if those long pointy things remind her of her pediatrician? She puts me in mind of most homebuyers in the current real estate market.
Today's news trumpets the highest rate of inflation for commodities in 27 years.
Citigroup said Friday that home prices could continue to fall for another two years.
And yet I'll make a prediction: If you're wanting to buy a home, and you don't do it before the Presidential Election, you'll kick yourself … (18 comments)
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interest rates: Interest Rates: This Morning (First Thing) Will Be a Good Time to Lock - 05/21/08 05:01 AM
IMHO, today will be a good day to lock an interest rate on your purchase if you do it first thing this morning. The US stock market was down nearly 200 points yesterday. Asia followed while you were eating dinner yesterday on the east coast, with a drop of more than 233 points on the NIKKEI index. It's the middle of the night on the west coast right now, and Europe is still in the up column, but barely, on news that business confidence in Germany unexpectedly rose this month. US index futures are up, so if you're going to lock, … (6 comments)
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interest rates: Good News for Real Estate Agents: Mortgage Rates Will Be Better Tomorrow... - 01/06/08 10:47 PM
...than they were last week. The stock market tanked Friday, and the demand for bonds increased. Interest rate pricing got better, and that means your customers will be able to get a lower interest rate on their home loans tomorrow.
This opportunity will extend into the week, as the overseas stock markets are struggling tonight, and there's not much news in the offing to turn things around here at home. But don't let them dawdle. It won't last.
The FED is going to mess with the discount rate again this month, I believe, and that has not been good for mortgage rates either of … (19 comments)
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interest rates: Will the FED lower interest rates? From his mouth to God's ears! - 08/17/07 12:13 AM
Federal Reserve Chairman Bernanke is feeling the pressure of a potentially explosive monetary crisis--the first of his tenure. Five years ago, in Jackson Hole, Wyoming, then Chairman Alan Greenspan addressed the advisability of the Federal Reserve "popping" asset bubbles to rein in perceived excesses. Greenspan didn't come right out and say "It's not our job," (He never came right out and said anything) but he did comment as follows: ""The more flexible an economy, the greater its ability to self-correct in response to inevitable, often unanticipated, disturbances...." From his mouth to God's ears! That was the summer of 2002.(photo courtesy Bloomberg)In November that … (7 comments)
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Mike Jones
Tucson,
AZ
More about me…
SUNSTREET MORTGAGE, LLC
Address: 2840 E Skyline Dr, Suite #230, Tucson, AZ, 85718
Office Phone: (520) 344-6943
Cell Phone: (520) 349-9090
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