Weak economic data as well as technical support has helped stabilize mortgage rates this morning following yesterday’s increase. Among the weak economic news was the Conference Board’s Consumer Confidence index which showed that consumers are less confident that previously thought. Furthermore, the S & P Cash-Shiller Home Price Index report showed price declines in all […]
For most of our clients, the idea of a “no closing cost” (NCC) refinance seems too good to be true. We think that these loans are great tools for helping our clients save money; but it is critical that our clients understand how they work. The purpose of this posting is to explain how we […]
Last Thursday we identified that mortgage-backed bonds were trading up against strong technical resistance and that we’d likely see mortgage rates move higher. Indeed that pattern is playing out this morning as mortgage-backed bonds fall under selling pressure. Adding to the pressure is strength in the stock market after news broke that JP Morgan Chase […]
The Economist has done an excellent job covering the credit crisis. In this weeks issue they have a 10-page briefing on various issues surrounding the credit markets, currency exchange, & central bank intervention. All of these issues stand to effect the direction of mortgage rates as well as credit tightening in our industry. If you […]
If at first you don’t succeed Mar 13th 2008 From The Economist print edition THIRD time lucky? The credit markets almost seized up in August, December and again this month and on each occasion the Federal Reserve has led a rescue attempt. Its latest effort led to a bout of euphoria on Wall Street, with […]
The financial markets are closed today for Good Friday. Current Outlook: Locking
Technical trading patterns have us concerned that we’ll see rates reverse higher over the coming days. Since bouncing off the 200-day moving average (blue line) back on March 7th 30-year fixed rates have improved by about .50%. However, the rally looks like it will be short lived. You’ll see in the chart below that the […]
A Fate Worse Than Debt: Are You a Walking Junk Bond? By JONATHAN CLEMENTS March 19, 2008; Banks are shaky. Bonds are suffering cuts in their credit ratings. Even bond insurers are hurting. Next up for a downgrade: people. As the economy sputters and the housing market slumps, folks are struggling to pay their bills, […]
Mortgage rates rose .25% following the Fed rate cut of .75%. Why? First off, we already know that Fed rate cuts raise concerns about future inflation. In his post-announcement speech Chairman Ben Bernanke said: “Inflation has been elevated, and some indicators of inflation expectations have risen. The Committee expects inflation to moderate in coming quarters, […]
Fed Cuts by Three-Quarter Point By BRIAN BLACKSTONE and HENRY J. PULIZZI March 18, 2008 2:19 p.m. WASHINGTON — The Federal Reserve on Tuesday slashed its key interest rate to a three-year low and signaled more reductions are likely, unloading heavy artillery in its effort to keep the credit crunch from triggering a prolonged recession. […]