Treasury Secratary Henry Paulson has been lobbying Congress & the American Public to support his plan to instill confidence back into Fannie & Freddie. Both the New York Times and Wall Street Journal carried stories this morning about his efforts. Here is a link the the NY Times article. Here is a link to the […]
Mortgages backed-bond prices are now at the lowest level we’ve seen all year which means mortgage rates are at the highest level. Earlier in the morning it looked as if mortgage rates may benefit from a sell-off in the stock market following weaker than expected earnings outlooks from American Express, Apple, & Wachovia. In fact, […]
The NYT did a great article about foreign participation of Fannie Mae and Freddie Mac mortgage-backed bonds on July 21st. The article quantifies the involvement of foreign investors in buying mortgage-backed bonds (which helps keep bond yields/ interest rates low). The article suggests that in the past few years Fannie Mae and Freddie Mac officials […]
Mortgages rates have now reached multi-month highs. Since Tuesday, July 15th the Dow Jones Industrial Average has rallied by over 6% as confidence in the financial sector has begun to return to investors’ psyche. Watch today’s you tube video for a refresher on how the stock market impacts mortgage rates. Current Outlook: cautiously floating
Mortgages rates are slightly higher for a 3rd straight day. Since July 15th the stock market has rallied by over 4%. This rally has pressured mortgage-backed bond prices lower by 188 basis points. Below is a chart showing mortgage backed bond prices over the past 6 months. Mortgage-backed bonds are currently trading at recent support […]
Mortgages rates are slightly higher again this morning following yesterday’s rally in the stock market. In case you missed it the equity markets rallied by the largest margin in over 3 months on Wednesday. Mortgage-backed bonds tend to trade inversely with the stock market. When the stock market rallies it pushes bonds prices lower, which […]
Mortgages rates are slightly higher this morning following worse than expected inflation data. The Labor Department reported that the Consumer Price Index (CPI) soared by 5% on a year-over-year basis. This increase to consumer prices is the largest since May of 1991. If you’ll remember back to yesterday’s rate update the PPI showed an increase […]
Unless you live under a rock you are probably very familiar with the turmoil ongoing in the financial sector of our economy. This turmoil brought Indymac Bank to its knees last Friday when the Federal Government seized it’s assets for failing to maintain adequate capitalization. This bank failure is the 2nd largest bank failure in […]
There are all sorts of things to talk about this morning. First off, the stock market is trading lower this morning. The Dow Jones Industrial average is now down below 11,000. Fears over the financial sector continue to hurt stocks as confidence in the US Treasury’s plan to aid Fannie Mae and Freddie Mac is […]
The Fed voted to add more regulations to the mortgage lending industry today. For an overview see this article on wsj.com. Also, here is a link to the Federal Reserve website to read their announcement.