It will be a busy week for economic data to be released. This morning we started the week off with the government releasing the monthly retail sales report. The report showed that retail sales in March were higher than what analysts had expected. Furthermore, the report revised February’s retail sales figure higher. Ordinarily this would […]
I originate very few 15 year mortgages. The reason? I believe that cash is king. Given that mortgage rates are at historical low levels I would rather see my clients take out a 30 year amortizing mortgage and invest the difference instead of potentially creating a cash-trap with a 15 year loan. Here’s an article […]
I’ve blogged before about how impressed I am with the coverage that the Economist Magazine has provided throughout the credit crunch that we currently find ourselves in. My praise continues this week. They have published an article pointing out the importance of teaching the masses about financial literacy. I have said all along that the […]
Mortgage rates increases yesterday afternoon by .125% but have since reversed back to the levels reported yesterday in ‘rate update’. The bond market is trading slightly higher in response a weak stock market. The Dow Jones Industrial is currently down over 100 points in part because GE reported weak earnings and gave weak profit guidance. […]
Our compensation typically ranges from 1-2% of the loan amount depending on the interest rate environment and type of loan we’re providing. With a 0% point loan structure the lender that we assign the servicing rights of your loan to will compensate us by paying us a fee for the right to collect the future […]
What is a point? A point is equal to 1% of the loan amount and is a fee that can be paid at closing in exchange for a lower interest rate for the life of the loan (in most cases the discount for paying a point is .125%-.375%). A point is disclosed on the Good […]
Mortgage-backed bonds rallied yesterday afternoon pushing mortgages rates slightly lower. From a technical standpoint mortgage-backed bonds are trading in a wide range and there does not appear to be any significant resistance or support. Because there is no significant technical influence or heavy economic data out today we’ll keep an eye on the stock market. […]
Inflation, Spanning Globe, Is Set to Reach Decade High By ANDREW BATSON April 10, 2008; Page A1 Inflation is back. After several years of relative stability, a wave of rising prices is washing over the world economy. It comes at a most inconvenient time. The Federal Reserve is sharply cutting U.S interest rates — the […]
I came across this video and thought it did a good job of explaining the factors involved in creating housing cycles.
Mortgage rates remain favorable this morning despite yesterday’s release of the Fed Minutes which revealed that two Fed officials dissented from the Fed’s last rate cut. The two Fed officials voiced concerns over inflation which we know is not good for mortgage rates. Further raising concerns about inflation are higher oil prices & a weaker […]