My Mind on Mortgages

Mortgage rates are lower by about .125% this morning after mortgage-backed bonds rallied yesterday afternoon.  In the last month mortgage rates have now decreased by approximately .75%. Yesterday after the close of the stock market aluminum maker Alcoa (AA) kicked off the 2nd quarter earnings season.  As expected their current earnings were soft.  But, they [...]

Mortgage rates are unchanged this morning. Since Wednesday of last week 30-year fixed rates have dropped by .375% as investors have shifted investment dollars away from equities and into “safer” bond investments (in that time both the S & P 500 and Dow Jones Industrial Average have also dropped).  The shift away from risk was [...]

Mortgage rates are unchanged this morning. As traders and investors await the 2nd quarter earnings season that kicks off tomorrow afternoon we don’t expect there to be a catalyst that would help mortgage rates move any lower. Beginning tomorrow we’ll need to keep a close eye on the stock market for clues on how mortgage [...]

Mortgage rates are essentially unchanged this morning despite an economic storyline that would typically help rates move lower. Equity markets around the world traded lower today as investors pull back on stocks ahead of earnings season which kicks off on Wednesday.  The US Dollar is trading higher against foreign currencies and oil prices are lower.  [...]

In yesterday’s ‘rate update’ we recommended floating rates into today’s jobs report and fortunately our advice paid off. Both fixed rates and ARMs are down significantly this morning. FHA rates remain unchanged. Analysts’ expectations were for 363,000 jobs lost last month. The report issued this morning showed that the economy lost over 100,000 more than [...]

Dan Green of The Mortgage Reports Blog posted this article today in which he explains the economic theory as to why mortgage rates often rise following a Fed rate cut. Here are a few outtakes: *The Federal Open Market Committee adjourns from its two-day meeting this afternoon.  The voting members are widely expected to lower [...]

The US Treasury Department caught a lot of peoples’ attention yesterday when it announced it was working on a plan that would “encourage” banks to lend 30 year fixed rate mortgages as low as 4.50%.  I’d like to personally thank Hank Paulson for the free advertising.  Since that announcement many past clients have inquired with [...]

With rates dipping I thought it appropriate to re-post the no closing cost refinance post.  Here is a link to read more. If you would like us to provide a free refinance analysis don’t hesitate to contact us.

This weekend The Economist magazine published this article about developed economies and the likelihood that they will experience deflation in the next few months. The article explains how deflationary pressures would be initiated because of falling commodity prices (known as “commodity-led deflation”).  The article goes on to explain how deflation can lead to further deflationary [...]

Mortgage rates are modestly higher this morning. Mortgage-backed bond prices continue to walk a tight rope along the 200-day moving average.  This important level of technical support/ resistance is what we’ll have our eye on over the course of the next few days. If mortgage-backed bond prices can manage to remain above this level then [...]