mortgage update: Market UpDate and FOMC Meeting W/NO changes to Key Short Term Rates
- 12/14/10 09:25 AM
Today's FOMC meeting has adjourned with no change to key short-term interest rates, as expected. The post meeting statement seemed to be favorable for bonds with points such as the economy not growing fast enough to improve unemployment, business spending has slowed compared to earlier this year and employers unwilling to add payrolls. These all suggest that the economy is growing much slower than the Fed would like, and accordingly they are continuing with their $600 billion Treasury security purchase campaign. So, bad news about the economy from the Fed is good news for the bond market, correct? Not today. The … (2 comments)
mortgage update: Lowest Level of Home Sales in 15 Years
- 08/24/10 08:24 AM
The National Association of Realtors reported existing home sales fell 27.2% in July to the lowest level in 15 years, with the supply of homes rising to 12.5 months at the current pace of sales. The weak state of the housing market is of great concern as it reflects deterioration in demand, which in turn affects prices. As one should expect, stocks are being sold and U.S. Treasuries are rallying as investors flock to a safe harbor with most of the buying on the long end; the 30 year bond. The price of the 30 year is higher by 1.75% while … (1 comments)
mortgage update: Monday Morning Mortgage UpDate
- 05/31/10 06:28 AM
Mortgage rates again moved downward as European debt concerns continued to mount. In addition toGreece's issues, Spain saw its debt downgraded last week. All of this continues to drive a majorinternational "flight-to-quality" with US treasuries seen as one of the safest places to stash money.Economically, our recovery does appear to be gaining some traction. While GDP was adjusted downslightly, we still have significant strength in manufacturing. Additionally, government stimulus haskicked home sales higher, with hopes that it can continue to hold its own without more intervention.While consumer moods have a long way to go to recovery, we're seeing better readings. Mortgage … (2 comments)
mortgage update: Long and Short-Term Mortgage Rates Fall Again This Week
- 05/24/10 07:17 AM
McLean, VA - Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.84 percent with an average 0.7 point for the week ending May 20, 2010, down from last week when it averaged 4.93 percent. Last year at this time, the 30-year FRM averaged 4.82 percent. Once again, the 30-year FRM has not been lower since the week ending December 10, 2009, when it averaged 4.81 percent. The 15-year FRM this week averaged 4.24 percent with an average 0.7 point, down from last week when it averaged 4.30 … (0 comments)
Today's FOMC meeting has adjourned with no change to key short-term interest rates, as expected. The post meeting statement seemed to be favorable for bonds with points such as the economy not growing fast enough to improve unemployment, business spending has slowed compared to earlier this year and employers unwilling to add payrolls. These all suggest that the economy is growing much slower than the Fed would like, and accordingly they are continuing with their $600 billion Treasury security purchase campaign. So, bad news about the economy from the Fed is good news for the bond market, correct? Not today. The … (2 comments)
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