Why Does the Auto Bailout take some Air out of the Hot Interest Rate Balloon? - 12/19/08 11:41 AM
Why does today's proposed bailout loan to Chrysler and GM cause interest rates to turn to the worse? 
There are a couple of reasons.  First, the money that will be used to lend to the auto companies is coming right out of the money that otherwise had been set aside to help mortgage backed securities.  More money for them (Jeep and Cadillac) means less money for us (homeowners.)  Second, there is always a bit of a stock market rally when corporate earnings get a boost.  While this is relatively small ($13 Billion is small now???) and it is more likely just … (0 comments)

Fed Targets Key Rate at ZERO to 0.25% - 12/19/08 10:35 AM
Tuesday the Fed made an historic announcement that their Open Market Committee dropped the target for the Fed Funds rate down to a range of 0.0% to 0.25%.  The Fed Target has never before been this low.  Mortgage Backed Securities are right now trading very high (good for lower long-term interest rates).
Of great interest in the announcement are two things perhaps even more important than the rate drop itself.  First, there is some very direct language about diminishing inflationary pressures.  In fact, the announcement says that "the Committee expects inflation to moderate further in coming quarters."  The second telling … (1 comments)

Bonds Looking Bright, Rates at Multi-Year Lows - 12/19/08 10:31 AM
Hope your day becomes sunny and bright.  Mortgage rates certainly are sunny and bright.  We are seeing the range of rates for various projects fall on both sides of the 5.0% point now.  Rates are at a multi-year low close to 50 year lows in fact!  (See the charts below.)  And Signet has relationships with many residential and commercial lenders that are ready, willing and able to lend.  The doors are open!
The outlook for Mortgage-Backed Securities (MBS) also continues to be sunny and bright.  Remember that there are two key components that drive the long-term interest rates, inflation and supply-and-demand … (0 comments)

Treasury Saber Rattling and Rates in the low 5% range - 12/08/08 09:08 PM
Big actions continue to impact Mortgage-Backed Securities, and first, let's talk about the Treasury and their desire to jump start housing with 4.5% mortgage rates.  I know this has the media all a-twitter.  It was a story that broke in Thursday's Wall Street Journal article (click here) and was picked up in most newspapers on Friday  with quotes like this from the NYT News Service  "At the Treasury Department, meanwhile, top officials continued to work on a plan to boost the housing market by subsidizing 30-year home mortgages with rates as low as 4.5 percent - a level that homebuyers have … (0 comments)

Christmas Comes Early and Why Interest Rates will Continue to Improve - 12/02/08 12:20 AM
We’ll have to call it Green Tuesday from now on – or Fat Tuesday comes to November.  The Tuesday before Thanksgiving was the announcement by the Federal Reserve of actions that are bringing back demand to the Mortgage-Backed Securities (MBS) Market. 
 
30 year fixed rates for conforming loans are now in the 5.5% range or better!   Also be aware that the conforming loan limit for some areas is up to $625,000!
 
We’ve been telling you for weeks that all of the inflation and economic news would lead to better rates than we have been seeing but an imbalance … (3 comments)

 
Dave Woodland - Your Bend, OR Friendly, Knowledgable Mortgage Professional (Signet Mortgage) Rainmaker_large

Dave Woodland - Your Bend, OR Friendly, Knowledgable Mortgage Professional

Bend, OR

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Signet Mortgage

Office Phone: (541) 318-0888

Cell Phone: (541) 749-0006

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At least weekly, I write about what is happening that may affect interest rates and mortgage-backed securities for the coming days.


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