Why Rates Are Down Slightly Are we on a rate rising or falling trend? Last week and the week before, mortgage rates moved higher because of inflation fears from better economic data, and political opposition to the Fed’s quantitative easing program. Then yesterday bonds rallied a bit to bring rates down. The $35 billion 2-yr
November 2010
Awaiting Irish Bailout Mortgage security prices ended Friday about where they started, worse by a few “ticks” (less than .125) on only $800 million of sales. So locks are way down, or everyone sold their pipeline already. Either way, if demand is steady or strong, and fewer mortgages result in less supply, look for mortgage
Rates rose .375% the week of November 8 and held this same level to end last week. As noted in the last WeeklyBasis, this means a borrower pays about $109 more per month on a $500,000 loan. Rates have risen because mortgage bond markets were expecting the Fed to say on November 3 that they’d
Rates rose .375% the week of November 8 and held this same level to end last week. As noted in the last WeeklyBasis, this means a borrower pays about $109 more per month on a $500,000 loan. Rates have risen because mortgage bond markets were expecting the Fed to say on November 3 that they’d
This unsolicited promo email is floating around in many mortgage lenders’ inboxes today. It explains a lot about the past few years, and portends an ongoing boom and bust routine. Click image for full size.
Yesterday’s inflation data helped rates drop about .25% since rising about .375% off lows set ahead of the Fed’s quantitative easing announcement. But today’s much stronger than expected Philly Fed number of 22.5 has caused a sharp 75 basis point mortgage selloff, pushing rates back up about .25%. Philly Fed went from 1 on October
Rates have rebounded about .25% since rising for several days last week through Monday. Today’s US Consumer Price Index, which measures inflation at the consumer level of the economy, helped matters. It was nearly flat at 0.2% in October and 1.2% year-over-year through October. Excluding volatile oil and food costs from the readings, “Core” CPI
Markets Don’t Know What To Do If you’re a trader, running a position and inclined to make occasional knee-jerk buy/sell decisions based on economic news, what would you have done yesterday with these headlines: Producer Prices show inflation is less than expected, Industrial Production rose 0.5% in October, the most in three months, Capacity Utilization
An area man created this flowchart to figure out how is mortgage was securitized. No he’s not Rube Goldberg, and this isn’t from The Onion. He’s a securitization auditor named Dan Edstrom and ZeroHedge has more. Click chart for full size.
This video is an entertaining take on quantitative easing. Will be funny to most because of its populist take, and hilarious to those who buy this week’s GOP talking points on QE2. (thanks to Brian M for sending)
Today’s October retail sales numbers are again positive and rates continue last week’s up trend as a result. GDP forecasts depend on an accelerating pace of consumer spending, thus the importance of today’s retail sales number which followed September’s .7% increase. October Retail Sales were up 1.2%, ex-auto it was +.4%. Meanwhile the October Empire
Today’s October retail sales numbers are again positive and rates continue last week’s up trend as a result. GDP forecasts depend on an accelerating pace of consumer spending, thus the importance of today’s retail sales number which followed September’s .7% increase. October Retail Sales were up 1.2%, ex-auto it was +.4%. Meanwhile the October Empire
Drastic Home Vacancies In U.S. The Census bureau just released its 3Q2010 home ownership survey. There are about 131m housing units in the U.S., 112m are occupied and 19m are vacant, 75m are owner occupied, and 37m are renter occupied. Census defines a housing unit as a house, apartment, group of rooms, or a single
Perhaps it’s early to ring alarm bells when rates are still in the 4s, but they’re up .375% since October 7-8, which means a borrower pays $110 more per month on a $500,000 loan. Back then, mortgage bonds hit record price levels on rumors the Fed would announce billions more in mortgage bond buying to
Perhaps it’s early to ring alarm bells when rates are still in the 4s, but they’re up .375% since October 7-8, which means a borrower pays $110 more per month on a $500,000 loan. Back then, mortgage bonds hit record price levels on rumors the Fed would announce billions more in mortgage bond buying to
I should have listened to my mom and become a lawyer. As WaMu was collapsing in 2008, the FDIC brokered a good deal whereby they seized WaMu then JP Morgan Chase bought it for $1.9b. But the speedy two-day deal now leaves a giant question: who should cover billions in WaMu legal liabilities? Chase says
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