My Mind on Mortgages

As expected the Fed announced today that they would leave short-term interest rates near historic lows.  No surprises there.  However, there was a couple interesting excerpts from their post-policy meeting statement which suggest mortgage rates are poised to move higher (also not a surprise if you’ve followed my blog posts time and time again).
Here is [...]

I was emailed this article by a friend.  In it the author, who alleges to be a former investment banker, “spins” the Federal Reserve’s current involvement in the US economy to lead readers into believing that we’re currently witnessing one of the largest financial conspiracy theory’s in modern history.
I had planned to respond to his [...]

Mortgage rates appear poised to move lower this morning.  Despite positive earnings reports that have helped stocks to move higher, mortgage-backed bonds have rallied this morning thanks to comments made by Fed Chairman Ben Bernanke.

Watch today’s you tube video for details on what he said.
Click this link to view Fed Chairman Bernanke’s Op-ed piece in [...]

If you like to “geek out” on economics like I do then you may also find this article interesting in today’s Washington Post.  In the article Chris Rugaber explains what impact short-terms rates has on the economy and why different central banks around the globe hold their short-term lending rates at different levels even though [...]

On Friday Fed Chairman Ben Bernanke announced that he endorses the concept of the federal government guarantying mortgage-backed securities (MBS’s) issued by Fannie Mae and Freddie Mac.  These comments should help mortgage rates move lower.
The reason that a government guarantee helps mortgage rates move lower is because it reduces the risk of default on MBS’s [...]

Mortgage rates moved higher again today.
The volatility in mortgage rates has been unprecedented as of late.  From Monday of last week to Thursday 30 year fixed rates dropped from 6.25% to 5.75%.  Since Thursday to today 30 year fixed rates cycled back higher rising from 5.75% to 6.375%.
Today all eyes are on the Fed.  They [...]

Rates are effectively unchanged this morning.
There is A LOT to talk about this morning as crisis in the financial markets persists. Here is a summary of the major stories we’re falling that are likely to impact the direction of mortgage rates:
→ AIG: The nation’s largest insurer is close to insolvency. Analysts are suggesting that the [...]

According to this article on bloomberg.com banks continue to tighten their lending standards. 
The measurement in which this article focuses on are derivatives which are priced to reflect the market’s expectation of future spreads between the Fed’s daily effective Federal Funds Rate and the rate at which banks are actually lending money.  When spreads increase it is a [...]

In his speech to the worlds most powerful central bankers today Fed Chairman Ben Bernanke spoke briefly about inflation according to this NY Times article. 
From the article, “Mr. Bernanke, while acknowledging ‘an increase in inflationary pressure,’ reasserted his view that in the near future, the upswing in inflation from the oil and food shocks was [...]

The NY Times published a good article today outlining the presidential hopeful’s views on financial regulation (click this link to view).  By the sounds of it we can expect greater governmental oversight over the financial markets in the coming years.
It is no surprise that a reaction for greater financial regulation has resulted following the third financial collapse [...]