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.
The Federal Government had a busy weekend dealing with ailing financial firms. Fannie Mae & Freddie Mac saw there stock prices fall by over 50% last week as investors expressed concern over the two firms’ large mortgage portfolio. The Treasury pledged to back to two companies should investor confidence erode further. This is good news […]
Mortgage rates have come down by .25%-.375% over the past week. In the absence of any scheduled economic data our attention is focused on the stock market and technical trading patterns. Watch today’s you tube video to get an understanding of how the technical trading patterns have shifted our near-term outlook for mortgage rates. Current […]
Mortgage-backed bonds did rally yesterday which has helped mortgage rates trend lower. In the absence of any significant economic data we will be watching the stock market & technical trading patterns. The stock market is currently trading modestly lower. Traders are trying to weigh the positive earnings news out of Aluminum maker Alcoa yesterday against […]
In a surprising reversal stocks sank yesterday after starting the day in positive territory. The sell-off in the equity markets helped mortgage-backed bonds rally which is why mortgages rates are slightly better this morning. Looking ahead there are a number of speeches today from key officials including Ben Bernanke and Henry Paulson. Their comments always […]
What is a 2nd mortgage/ home equity loan? A 2nd mortgage is a loan that is originated and subordinated behind a first mortgage. 2nd mortgages are also referred to as home equity loans, junior liens, or combination loans. These loans can take on various forms. The two most popular 2nd mortgages are the Home Equity […]
Mortgage rates appear to be trending higher as economic uncertainty prevails over the financial markets. Friday’s jobs report indicated that the labor market remains very weak. June marked the 6th consecutive month that the US economy lost jobs. However, higher commodity prices continue to raise concerns over inflationary pressures in our economy. The Fed is […]