There was some big news in the mortgage industry last week. The Federal Reserve announced Quantitative Easing 3, which will funnel another $40 billion into purchasing mortgage backed securities. Wow, that’s a lot of money. Even more so when you consider that the $40 billion is EACH MONTH! We’ve seen the market react a little to this news and it has put some pressure on interest rates, lowering them from last week and possibly lowering them further in the coming weeks although not by much. The intention isn’t really to lower rates but to keep them from rising. … (0 comments)
minnesota mortgage rates: October 19th Market Update
- 10/19/11 04:33 AM
Good morning, Rates are continuing their slow creep up and unless we see some major news negatively about Europe or some other ‘scary’ negative financial news, I’d expect this trend to slowly continue. In the meantime, the World Series is on tonight and after being up the past couple nights with our little girl and her teething, I may be asleep before the game starts J Rates are below, have a great week! Rates: 30 year fixed at 4.125% and the 15 year at 3.375%, FHA: 3.75%: As always rates change with individual credit scenarios and programs, with credit in the … (3 comments)
minnesota mortgage rates: Once again, Europe is affecting interest rates.
- 10/05/11 05:39 AM
Good morning, As expected, rates are holding steady. The technical signals that would generally help us achieve lower interest rates are where we would expect them to be but as we’ve seen time and time again in the past couple years, the emotional hurdle of global news stories somehow finds a way to shift investors minds. Modest news in Europe seems to engage the stock market, taking money out of the safer havens like Mortgage Backed Securities. Rates are below, have a great week! Rates: 30 year fixed at 3.875% and the 15 year at 3.125%, FHA: 3.75%: As always rates … (0 comments)
minnesota mortgage rates: Back to school and back below 4%. How did we get here?
- 09/07/11 04:23 AM
Good Morning! Rates continue to stay at unprecedented lows, with the 30 year fixed dropping below 4% once again and a big talking point in the news is the job outlook. Is it improving? Some say yes, some say no and both sides have their statistics and numbers to argue their side. Here's my question: Why is their so much focus on the job outlook? Yes, people need jobs for the same reason most of us do, homes, family, bills, etc. You get the picture. I get the sense that the reason this becomes so important is based much more around … (0 comments)
minnesota mortgage rates: June 1st Market Update: Rates continue to drop
- 06/01/11 05:55 AM
Good afternoon, We are seeing another pleasant dip in interest rates coming into today, the main reason for this continued benefit to interest rates lies in the economic reports consistently showing that the economy is still very slow right now. When we investors start to see consistent economic growth, we will see these rates rise with them, but for now they are staying quite low. Rates: 30 year fixed at 4.25% and the 15 year at 3.75%, FHA: 4.125%: As always rates change with individual credit scenarios and programs, with credit in the mid 700s and a 20% down payment these … (0 comments)
minnesota mortgage rates: May 18th Market Update...rates keep dropping.
- 05/18/11 04:54 AM
Good morning, Interest rates are continuing to drop, with the stagnate housing market and a slower than expected economy (slower than many investors speculated, anyway?). It’s a great time to re-evaluate and look at whether refinancing will make financial sense or getting back on the home search wagon (I can’t remember if it’s pulled by Clydesdales or not, but either way it’s not a bad idea to try and take advantage). That’s all I have for you today, have a great week! Rates: 30 year fixed at 4.375% and the 15 year at 3.75%, FHA: 4.125%: As always rates change with … (0 comments)
Rates took a huge hit last Thursday when China expressed their interest in supporting European bonds, giving many investors that had been putting their money into our bond market the confidence to start moving money back overseas…when money flows into mortgage backed securities rates go down, when it goes out, rates go up. We have seen the damage of this taper off the past few days but the trend is veering towards a rise in interest rates again.
In the meantime, I am sitting and awaiting news that Shannon and I are to become Aunt an Uncle … (0 comments)
I have attempted to explain my thoughts on why interest rates are currently lower than they should be and why that will change in the coming year. Yesterday, I came across an article from CNN that goes a little further in depth in explaining it. If you are interested in checking it out, feel free to read up.
The big economic news today was that new housing construction has dropped over 10% in October. There seems to be some debate between economists on this being good or bad. On one hand, you have the fear … (0 comments)
We have been fortunate to see rates drop even lower than last week. This was mainly due to last Thursday’s jobs report being released with higher than expected numbers. Mortgage backed securities are now backing off the gains for the first time in a few days which means we should see rates move back up going into the end of the week. One interesting thing to note (well interesting to me anyway); this marks the second time this year we have seen rates this low going back to May as the previous time we watched this level hit. … (0 comments)
It’s been a little while since we’ve seen interest rates dip below 5% in this current market climate. We have seen time and time again over the past two years that when rates near this level, they tend to reverse fairly quickly. This Friday will be the release of the monthly jobs report. Traditionally, this has always indicated a trend in which way interest rates will be heading. This year we have seen it act a little differently, the Jobs Report can signal a rise in interest rates but we have yet to see these numbers drive … (0 comments)
After a quick jaunt out to Boston with my wife and a few friends, we are refreshed and ready to tackle the upcoming rush for first time homebuyers to buy a home before the $8,000 tax credit expires. It is currently set to expire on November 30th which means that many homebuyers will need to make sure they get have an offer accepted by the end of this month to ensure they will be able to close on the new home in time.
Because of the expiration date, we are expecting title companies to get booked up … (1 comments)
As expected last week, rates rose to 5.375% through Friday of last week. Today’s market reactions have brought us back down to where we were last week. There was a rally in the market based on the positive results of the 2-year Treasury Auction being released yesterday.
This is still a time to be weary of where rates are heading, we are still in an artificial rate environment with the Federal Reserve purchasing mortgage backed securities themselves to keep demand consistent. When they use up the 1.3 Trillion they have dedicated to this program, rates will … (0 comments)
minnesota mortgage rates: September 3rd Market Conditions
- 09/03/08 02:49 AM
Good morning, Lately the name of the game has been oil (http://money.cnn.com/2008/09/03/markets/markets_newyork/index.htm?postversion=2008090310) . I find it funny that one thing can affect the entire economy so dramatically from week to week. As you will see below, rates took a massive drop this week. There are no major economic reports being released so trading has been made based off of speculation and it appears that the stock market was expecting Gustav to cause more damage to the oil industry than it did. Fortunately for the people who are living in the wake of yet another hurricane, this one seemed to cause much … (0 comments)
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