This loan program carries a 30 year fixed interest rate with a 10-year interest-only payment period. With this program your interest rate remains fixed for the entire 30 year term of the loan. What makes it different from a standard 30 year fixed rate mortgage program is that for the initial 10 years the lender […]
In this weekend’s Barron’s there was an article that featured a Q & A with Merrill Lynch Chief Economist David Rosenburg. He is credited with calling the current economic slowdown far before anyone else and makes interesting predictions about American Households’ spending patterns in the future: Here is a excerpt from the article: Q: Will […]
We’ve talked frequently in ‘rate update’ about the impact that a strong stock market can have on mortgage rates (generally speaking, a rallying stock market will push mortgage rates higher). Currently the Down Jones Industrial Average is up over 200 points. The rally is being credited to two main points: Watch today’s you tube video […]
Mortgage-backed bonds rallied on Friday helping rates move lower this morning. There is not much in the way of economic data out today so we will be watching the stock market to get a read on investor sentiment. Currently the major indexes are essentially trading flat on the day. On Friday the monthly jobs report […]
The WSJ reported this morning that Treasury Secretary Hank Paulson will unveil an overhaul to the regulatory system for the financial markets on Monday. This should be very interesting. One of the provisions in the article calls for a Federal system for state monitored mortgage companies. Here is the article: Sweeping Changes in Paulson Plan […]
Mortgage rates increased this morning following a sell-off of mortgage backed bonds yesterday afternoon. It looked as though mortgage-backed bonds may fall below the all-important 50-day moving average but thankfully this morning’s personal spending report helped support prices. Watch today’s you tube video to find out how this report is helping mortgage rates….. Current Outlook: […]
Mortgage-backed bonds are testing the 50-day moving average again today. On Monday we hit the 50-day moving average and bounced higher which helped rates move modestly lower. If we can bounce higher again we should see rates improve. However, we remain concerned about the strength of the 50-day moving average as a support level. Should […]
This may be a little technical for most folks but this article explains that the curretn spreads between US treasury bonds & mortgage-backed bonds (MBSs) are extremely high. If we get some confidence back in the credit markets we should see this spread narrow which would send mortgage rates lower. From WSJ.com: Bond, Loan Markets […]
The purpose of this article is to give consumers a guide for determining whether or not a proposed refinance makes financial sense for them. Through my interactions with many of my clients over the years I’ve found that much of the population is left confused when evaluating mortgage refinance options. I hope that I can […]
More weak economic data and positive technical trading patterns have helped mortgage rates this morning. The gain in mortgage rates may be short lived however as two prominent Fed officials are scheduled to speak later today. We know that inflation remains a primary concern for the Fed and any mention of inflation in their speeches […]