My Mind on Mortgages

A guy named Michael Snyder posted this slightly comical/ slightly- dooms-day account of the history of quantitative easing & American monetary policy over the past 30 years.  I don’t believe in the outcomes that Michael eludes to in this article but never the less it is an interesting read.  It is a little disturbing to [...]

You may recall that I blogged THIS POST at the end of September in which I indicated that lower mortgage rates would be dependent on HOW MUCH the Fed would engage in quantitative easing.  The WSJ reported today (see HERE) that Fed Chairman Ben Bernanke stated in a speech today that he believes “additional purchases [...]

Last week in their monetary policy statement the Fed acknowledged that they were concerned about the strength of the economic recovery and that they stood by ready to act to stimulate the economy if needed.  Given that short-term interest rates are already close to 0% their traditional mechanism for steering the economy has already been [...]

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 [...]

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 [...]

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 [...]

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 [...]

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 [...]

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 [...]