mortgage rates: February 2, 2009 - The Week Ahead
- 02/02/09 01:40 AM
Consumer confidence reached an all-time low and 100,000 Americans were issued layoff notices last week. For the 3rd consecutive week, mortgage rates rose and average loan fees increased. Amid all of the negative economic news, however, there were two bright spots worth identifying. First, the supply of "used" homes for sale fell from 11 months to 9 months nationwide. This suggests homebuyers are re-entering the housing market in force and signals home prices are nearing equilibrium. And, second, the nation's GDP -- a measurement of the country's complete economic footprint -- didn't fall by nearly as much as experts predicted. A positive surprise like this makes us … (0 comments)
mortgage rates: The Truth About Those 4.5% Mortgage Rates You Keep Hearing About
- 12/04/08 04:23 AM
Business television is abuzz this morning with talk of "4.5% mortgage rates"; this clip ran on NBC Today. The news stems from a leaked story the U.S. Treasury will intervene in the mortgage market, lowering rates a full percentage point below current levels. As cited by every journalist in every publication, however, the story is 100% speculation. Naturally, that doesn't stop the press from covering it. When hope for homeowners gets spread in this manner, it's important to remember some facts: The Treasury doesn't set mortgage rates -- Wall Street traders do. Historically, rates are based on the Supply and Demand for mortgage-backed bonds. Treasury intervention … (6 comments)
mortgage rates: You Locked In A Low Mortgage Rate -- Now You've Got To Close On It
- 12/02/08 08:28 AM
Each Wednesday, the Mortgage Bankers Association releases its Weekly Applications Survey, a detailed look at new mortgage applications submitted over the previous 7 days. This week's report will reveal what most of us already know -- plunging mortgage rates created a flood of mortgage activity. If you're among the many Americans taking advantage of today's low rates, don't forget that when your rate was "locked", it was locked with an expiration date. Most likely, that rate lock is for 30 days. And, while 30 days may seem like a long time, it's not. Especially because rate locks made prior to Thanksgiving lose a combined … (0 comments)
mortgage rates: Looking Back And Looking Ahead : December 1, 2008
- 12/01/08 12:51 PM
Government action fueled a mortgage market rally last week, leading mortgage rates lower for the second consecutive week. Despite soft housing numbers and evidence of a slowing economy, mortgage rate shoppers found reason to celebrate: Citigroup was "rescued" Wall Street liked the new economic team The government pledged $600 billion to buy investment-grade mortgage bonds These 3 elements helped drive mortgage rates to their lowest levels since January 2008 -- in some cases shaving a full percentage point off the offered rate. Homeowners responded to the dip and refinance activity reached "a frenzy". As evidence, at least one national mortgage bank … (0 comments)
mortgage rates: Mortgage Rates Fall
- 11/26/08 05:27 AM
Like everything else on Wall Street, mortgage markets are based on supply and demand. When demand outweighs supply, mortgage rates fall. So, Tuesday, when the government unexpectedly announced a $500 billion budget for buying mortgage debt from Fannie Mae and Freddie Mac, the demand side of the mortgage market ballooned. The surprise demand helped push mortgage rates to their lowest levels since January 22, 2008. 30-year fixed mortgage rates were down by as much as three-quarters of a percent Tuesday before retreating higher. Not coincidentally, January 22, 2008, was the date of another unexpected government intervention -- a surprise 0.750 percent Fed Funds … (2 comments)
mortgage rates: November 17, 2008 - Market Update
- 11/17/08 03:32 AM
Another volatile week in this crazy market. Retail Sales dropped for the 5th straight month. Expect a dismal holiday shopping season ahead...probably the worst retailers will have seen in a long time. Circuit City filed for Chapter 11 Bankruptcy, and will be closing 150 stores. We also learned of poor economic reports from Nordstrom, Best Buy, Macy's, Wal-Mart, General Motors and Intel. And bad news continued on the job front, as Initial Jobless Claims reported the highest number of first time unemployment claims since 2001. Jobless claims have reached their highest level in 25 years. As a general rule, weaker than expected economic data … (1 comments)
mortgage rates: Looking Back And Looking Ahead : November 10, 2008
- 11/10/08 03:02 AM
Mortgage rates fell last week, marking just the second time since September that rates improved on a weekly basis. The biggest news of the week was the U.S. Presidential Election. Markets appeared to cheer the Republican-to-Democrat transfer of power, posting large gains Tuesday, Wednesday and Thursday. This in spite of a spate of negative economic news: Auto makers are bleeding cash Jobless claims at a 25-year high Retail sales appear to be stalling Instead, mortgage markets shrugged it off. The general consensus among traders last week was that the Democratic White House will make every effort to ignite the economy and, if those … (0 comments)
mortgage rates: How The Presidential Election May Impact Mortgage Rates
- 11/04/08 02:22 AM
More than a handful would-be home buyers stayed on the sidelines this year, waiting for Election Day to pass. The prevailing thought was that once the new President-Elect was identified, credit markets will systemically unfreeze and housing markets will return to normal. If history is a guide, this is an unlikely scenario. Election Day doesn't figure to alter markets any more in 2008 than it did after the four previous presidential elections. If anything, post-Election Day market reaction has been muted: 1992 : Dow closes down 0.9 percent the day after Election Day 1996 : Dow closes up 1.6 percent the … (6 comments)
mortgage rates: Looking Back And Looking Ahead : November 3, 2008
- 11/03/08 12:09 PM
As global credit markets deteriorated in October, mortgage markets displayed an unnerving amount of volatility. Last week was no different. But, unlike in previous weeks in which rates improved on some days and worsened on others, mortgage rates were mostly higher last week, finishing the month on a surge. The biggest reason why mortgage rates rose last week is that hedge funds and other investors are still hard-pressed for cash and are dumping their mortgage-backed bond portfolios into the market. The excess mortgage bond supply drove prices lower last week, which, in turn, caused rates to rise. However, forced selling by … (2 comments)
mortgage rates: Why Mortgage Rates Haven't Fallen As Expected
- 10/31/08 03:03 AM
When the government nationalized mortgage lending in September, housing analysts predicted lower mortgage rates. For a brief two-week stint, they were right -- post-takeover, the 30-year, fixed rate mortgage fell below 6.000 percent nationally for the first time in 7 months. Since then, however, mortgage markets have reversed. Rates are now at pre-takeover levels. Now, this isn't to say that the nationalization was a failure -- far from it. The government's takeover of Fannie Mae and Freddie Mac accomplished two very important goals: It restored failing confidence in the U.S. mortgage markets It opened legislative channels for faster, more relevant housing … (1 comments)
mortgage rates: Looking Back And Looking Ahead : October 27, 2008
- 10/27/08 07:53 AM
Mortgage markets followed the recurring trading pattern of 2008 last week -- volatility, volatility, and more volatility. After opening with a strong performance that drove rates down, late-week fears of a global recession reversed that path. Mortgage rates ended the week unchanged. This was an unexpected outcome for the week considering that: The dollar gained 5%, making bonds "worth more" Oil fell 11%, helping to spur consumer spending LIBOR dropped slightly, signaling a credit thaw Each of the above factors usually helps to generate new demand for mortgage bonds, pressuring mortgage rates lower. But, this market is anything but normal. Because … (0 comments)
mortgage rates: Looking Back And Looking Ahead : October 20, 2008
- 10/20/08 08:22 AM
Last week, the Dow Jones Industrial Average recorded both its largest one-day point gain and second-largest one-day point loss in history. Mortgage markets got whipsawed, too. From day to day, huge rate swings made mortgage rate shopping difficult. It wasn't uncommon for lenders to change pricing 3 times per day. When the week closed, though, rates were lower than at Market Open Monday, marking the first week of improvement in mortgage rates since early-September. Last week's constant mortgage rate movement had several causes: Retail Sales data was weaker than expected The Federal Reserve report showing a slowdown in all 12 regions … (1 comments)
mortgage rates: Looking Back And Looking Ahead : October 13, 2008
- 10/14/08 04:13 PM
Throughout the feverish activity on Wall Street last week, mortgage bonds sold off with force, driving mortgage rates to their highest levels since July. It was the fourth straight week in which mortgage rates worsened. But, with the mortgage markets closed Monday, stock markets rallied to their largest one-day gain in history. The Dow Jones' gains are expected to push mortgage rates down Tuesday, but not nearly enough to recover last week's losses. The market-wide carnage was mostly the result of a fear that has not been completely removed from investor psychology. Until that fear is purged, therefore, expect mortgage rates … (2 comments)
mortgage rates: Some People Were Thrilled To Watch The Stock Market Fall Below 10,000
- 10/07/08 09:21 AM
Monday, the Dow Jones Industrial Average closed below the psychologically-important 10,000 level for the first time since 2004. Despite the milestone-marker breach, however, there was a large group of Americans with reason to cheer. As stocks sold off, mortgage markets rallied to the benefit of home buyers and mortgage rates shoppers everywhere. Conforming mortgages rates improved yesterday. Most interesting here is that rates improved for the same reason that the stock market fell. Because of lingering concerns about the worlds' economies, investors lost their collective appetite for risk Monday. In response, they sold their stock positions and parked the proceeds … (3 comments)
mortgage rates: Looking Back And Looking Ahead : October 6, 2008
- 10/06/08 09:58 AM
Congress approved the $700 billion "Bailout Bill" Friday, answering the question that dogged mortgage markets all week long: Will they or won't they pass it? The uncertainty prior to the vote created huge market swings that ultimately sent the Dow Jones Industrial Average to its worst week since the 2001 terrorist attacks, while causing similar damage in the mortgage markets. Mortgage rates worsened for the third straight week last week. However, if we take the congressional vote out of the picture and look strictly at last week's data, we would have expected mortgage rates to fall instead of rise. For example, … (0 comments)
mortgage rates: Mortgage Rates Are Headed Higher AND Lower -- Quickly
- 10/01/08 03:44 AM
Monday, after the House of Representatives defeated the Emergency Economic Stabilization Bill of 2008, the stock market fell in historic fashion. The Dow Jones Industrial Average closed down 777.68 points, its largest one-day point loss ever. By Tuesday, however, optimism had returned to Wall Street. Assuming that the bill would pass in some form, investors poured back into the stock market, driving prices up. Again, in historic fashion -- Tuesday's gains were the third-largest on record. The stock market activity is highly relevant to mortgage rates right now because when investors flee the stock market, they're often parking their money in bonds. In … (1 comments)
Mortgage rates bounced around last week, ending up worse overall. It was the second straight week in which rates deteriorated. Sentiment was driven largely by the proposed Emergency Economic Stabilization Act of 2008 -- a.k.a. The $700 Billion Bailout. The good news is that Congress drafted its bill Sunday evening and within the 110 pages, there is an important clause that should be good for mortgage rates. On Page 40, it says, summarized: The U.S. Treasury gets $250 billion up-front It must ask the President to approve its next $100 billion And Congress must approve the remaining $350 billion In other … (2 comments)
mortgage rates: What Happens To Mortgage Rates When Crude Oil Adds $25 In One Day
- 09/23/08 12:14 PM
Crude oil prices jumped $25 at one point Monday, ending the day up by 16 percent. This is an unwelcome development for home buyers because the same market forces that pushed up oil prices had a similar impact on mortgage rates. It all comes down to the U.S. dollar. Because both crude oil and mortgage-backed bonds are denominated in dollars, the fate of both instruments has been closely tied to the greenback lately. With respect to the mortgage market, when the dollar has been strengthening, rates have tended to fall. And, when the dollar has been weakening, mortgage rates have tended … (1 comments)
mortgage rates: Make Sure You're Prepared To Take Advantage Of The Next Interest Rate Drop!
- 09/19/08 03:07 AM
Getting a great, low mortgage rate is often a combination of luck and preparation. Consider what happened in conforming mortgages this week: Monday, mortgage rates plunged to their lowest levels of the year Tuesday, they bounced back in full Wednesday, they clicked higher by a eighth-percent Thursday, they clicked higher by another eighth-percent And so, here we on are Friday, four days after the best rates of the year, and the mortgage market barely resembles itself. Despite what the papers tell you, mortgage rates are not low anymore. That's the luck element -- you can't plan for rates moving up and … (3 comments)
mortgage rates: August Jobs Report
- 09/06/08 09:49 AM
On the first Friday of every month, the government releases its Non-Farm Payrolls report. More commonly called the "jobs report", the two-page analysis examines the nooks and crannies of the U.S. economy to see which industries are hiring and which are firing. The August jobs report was released Friday morning and it shows that the U.S. economy shed 81,000 jobs in August. This marks the eighth straight month in which payrolls declined and puts the annual job loss total at 605,000. The Unemployment Rate jumped to 6.1% -- its highest level in 5 years. For American workers, this is bad news. … (0 comments)
Consumer confidence reached an all-time low and 100,000 Americans were issued layoff notices last week. For the 3rd consecutive week, mortgage rates rose and average loan fees increased.;)
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