mortgage markets: TRIPPING OVER DOLLARS While Chasing Pennies
- 01/24/12 01:52 PM
Thirty year mortgage rates have been moving lower over the past week and are currently in the low 4s, + or - , depending on each of the myriad of loan variables. Many of you know that over the past year rates moved as low as 3.5% for 30 year fixed mortgage loans and as high as just under 5.0%. If this economy begins to recover, even the slightest hint of improvement, the mortgage rates will climb to over 6% in a heart beat. So at this point my position is to take a very conservative stance on the future of lower … (3 comments)
mortgage markets: Why the Rates Got Worse Today!!!!!!
- 08/27/10 08:02 AM
Markets waited all week for Perfesser Bernanke's keynote speech today at the central bankers' conference in Jackson Hole. Fishin' up there is good, and would have been a better use of time. Rates are now rising sharply from their lows after the Perfesser's murky address accurately reflected a divided and uncertain Fed, in a reactive state several miles from anticipation and pre-emption. There will be no new QE (quantitative easing, the Fed's direct injection of invented cash) or any other substantive action until the economy declares itself, double-dip or modest recovery. The job market will be definitive, but this Fed will … (3 comments)
mortgage markets: Rates Going Up over the Holidays????
- 12/22/08 03:49 PM
Well, the Holidays are officially upon us. There are so many people who have already left for the holidays. We're seeing what happens during this time each year. Rates generally go up. That is exactly what has happened during this season. Last week the Fed announced that it was going to buy up most of the mortgage backed securities. When mortgage backed securities or MBS's are bought up, rates drop down. Most people think that when the stock market goes down rates go down or even inversely when the stock market goes up.....rates go down. The reality is that there often times … (10 comments)
mortgage markets: See What I found out from the Fed....
- 12/17/08 04:45 AM
This is great...according to market reports the Fed doesn't think that the Fed lowering of the Fed lending rate is sufficient to stimulate the economy. If you think about it. If the Fed lending rate drops to -1.0.... in other words, the Government is paying to borrow money, it really doesn't matter if banks won't lend you money. I heard on the radio that in order to truly stimulate the economy we need to jump start the mortgage lending process and the fed was going to take action to overstimulate MORTGAGE RATES. This is huge for our business and the economy … (6 comments)
mortgage markets: What stirred our market today?
- 11/25/08 02:44 PM
The Fed is making it clear that they think Mortgage Rates to consumers are too high relative to Treasures. The last time we had rates (Treasuries & MBS) this low was back in 2003-2004, when the 10Yr Treasury bottomed out (in Yield) at 3.11 on 6/13/03, and the Fannie Mae 30y 30 day commitment (FNCR3030 on Bloomberg) bottomed out @ 4.66 for a spread of 1.55. Currently this spread is 2.53, which is 98BP wider then it was in 2003. Many things have changed over the last few years, with the current economic and housing situation looking worse then they did … (5 comments)
mortgage markets: One Take on the Fannie Freddie Takeover!!!!!
- 09/08/08 03:52 AM
As you no doubt know, the federal government yesterday took significant action with regard to Fannie Mae and Freddie Mac. The basic facts are below. In addition I have attached several fact sheets from the Department of Treasury. The Treasury indicates that they are acting primarily out of concern that Fannie and Freddie's ability to fulfill their mission has deteriorated, particularly with regard to the capacity of their capital to absorb further losses while supporting new business activity. As a result, Fannie and Freddie's regulator is taking over all of the duties and powers of the management and board of the … (8 comments)
mortgage markets: Mortgage Applications UP!!!!!!
- 09/03/08 01:48 AM
They say "the trend is our friend." If that's the case, then the news from the Mortgage Bankers Association should be welcome news. The question is....does 1 week make a trend? We don't have 1 week, we have 2. Weekly mortgage applications in the United States increased in the week ending Sept. 3, according to data released from the Mortgage Bankers Association (MBA) TODAY!!!!, which reported a 7.5% week-over-week rise in applications. In the previous week, applications also rose by 0.5%. The average loan size was $215.6k, compared to previous week's $216.9k. The average interest rate for a 30-year fixed-rate mortgage … (7 comments)
mortgage markets: Today's Abbreviated Market Recap!!!!
- 07/24/08 03:06 PM
Good Evening Sports Fans! Here's a recap of the heavys determining today's market. I picked most of this off of Bloomberg, but a great day for interest rate improvements nonetheless.... •§ DJIA was down 283 points •§ Oil was up $1 to $125.45 •§ With the exception of Radian and Thornburg, the rest of the watch list was in the red today •§ Fannie Mae and Freddie Mac down almost 20% on the day •§ The Fannie Mae 6.0 September coupon closed above par! (up 19.5/32 or 61 bps) •§ Interest rates across the board rallied in price, pushing rates lower … (0 comments)
mortgage markets: Facts You Need to know!!!!! Regarding The Home Lending Industry
- 01/14/08 05:21 AM
FACT: The homeownership rate remains near record levels at 68.2 percent.FACT: Thirty-five percent of homeowners own their home outright; 48 percent are in fixed-rate mortgages. Fifteen percent of homeowners have adjustable-rate mortgages (ARM). Only 5 percent of homeowners are nonprime borrowers with adjustable-rate mortgages. FACT: ARM products have a long and successful history, and nontraditional products have allowed many first-time homebuyers to own their homes. FACT: About 1.7 percent of all loans are in the foreclosure process. FACT: In today's market, trends indicate that more than half of people who enter foreclosure eventually lose their home; however, there are no reliable data … (5 comments)
mortgage markets: Year End Summary....pretty crazy no matter how you slice it!!!
- 01/02/08 03:37 AM
1. After several twists and turns, the story that we laid out a year ago has indeed played out -- a persistent downturn in the housing market that persuaded the FOMC to ease policy aggressively in order to reduce the risk of a sharp economic downturn. We believe that this story has further to go in 2008. So our monetary policy call is considerably more aggressive than the consensus, with a 3% terminal funds rate. Our best guess is that a proactive Fed will be able to keep GDP growth from going negative (though it's a close call, especially in H1). 2. Why does the Fed need … (2 comments)
mortgage markets: Fed Makes it's Move....Merry Christmas
- 12/11/07 05:26 AM
Borrowers Get Year-End Gift from Fed The Federal Reserve lowered interest rates today for the third straight meeting of the FOMC. What does this mean? Well, if you're looking to capture the best home loan rates, you need to act now. For those with an application already in process, you should probably lock your rate as soon as possible. And, for anyone who has yet to begin a loan application, what are you waiting for? Rate Hikes on the HorizonDespite this latest cut from the Fed, rates for many borrowers could actually increase soon. Why? Because Fannie Mae and Freddie Mac have … (0 comments)
mortgage markets: Today's Market prior to the Fed Move
- 12/11/07 01:25 AM
Today's Market CommentaryYields rose again on Monday, bringing the rise over the past week (since Monday, December 3) to 30bp across the curve. Stocks were fairly strong and financial stocks enjoyed a continued recovery, partially in response to news of significant cash infusions, despite continued losses. MBIA announced that they will receive a $1 billion investment from Warburg Pincus, seeking to shore up its "AAA" rating. While the capital infusion was a significant positive, much of the capital will be immediately eaten through to offset Q4 losses. MBIA said, deterioration in residential mortgage-backed securities (especially prime home equity LOC and seconds) … (0 comments)
mortgage markets: Bonds Stabilize Ending Deterioration
- 12/10/07 02:08 AM
Today's Market CommentaryMarket focus is now on the Fed with a 70% plus chance of a 25bp cut at this weeks FOMC meeting based on CBOT futures trading. If the decision is not for a 25bp cut, a greater probability is assigned to a 50bp cut than to no change. A lack of liquidity and investor anxieties based on credit uncertainties are the perceived basis for the likely decision to a greater extent than the overall outlook for economic growth. Today's report from the National Association of Realtors indicate mixed data depending on the State. Despite overall decline on existing home … (0 comments)
mortgage markets: Great Time to Shop for a home? Really? According to Mortgage News Daily it is....
- 12/06/07 03:18 PM
Depending on the data you are looking at, national average home prices are down significantly. On average, this trend will continue, but consider three things. First, the hardest-hit markets drag down the average depreciation. Second, mid to high priced homes were more inflated than entry level housing. When those homes depreciate, they have farther to fall than a lower priced home. This also brings down the average. Finally, because panic can create a knee-jerk reaction among sellers, and market perception can create a hesitance among buyers, prices can be lower on the way down than they will be at the bottom. … (3 comments)
mortgage markets: Bush's Subprime Rescue Plan Coincides With Sobering Delinquency Report
- 12/06/07 03:12 PM
As reported in the Mortgage Daily News, Several hours before President Bush announced the details of his administrations plans to assist homeowners who are facing foreclosure the Mortgage Bankers Association released its delinquency survey for the third quarter. The survey showed that the number of loans in the foreclosure process and the number of loans entering that process were at the highest levels since MBA began keeping records 21 years ago. Loans entering foreclosure - generally those that are 90 days in arrears on payments - represented a seasonally adjusted 0.78 percent of all loans on one-to-four family residences. In the second quarter … (1 comments)
1 “Let not your heart be troubled; you believe in God, believe also in Me. 2 In My Father’s house are many mansions; if it were not so, I would have told you. I go to prepare a place for you. 3 And if I go and prepare a place for you, I will come again and receive you to Myself; that where I am, there you may be also. 4 And where I go you know, and the way you know.” (John 14:1-4, New King James Version)
Thirty year mortgage rates have been moving lower over the past week and are currently in the low 4s, + or - , depending on each of the myriad of loan variables. Many of you know that over the past year rates moved as low as 3.5% for 30 year fixed mortgage loans and as high as just under 5.0%.
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