January 2011

Rates Slightly Better on Bank Earnings, Housing Starts

Rates are generally even on today’s market news which includes bank earnings and some housing data, as follows: Wells Fargo’s earnings came out as expected at $3.2 billion (61 cents per share). Initial reads show that Wells’ loan growth was better than expected. Credit quality improved dramatically, allowing Wells to release some $850 million in

Is 30% Down Payment A “Safe” Loan For Regulators?

Regulators are eyeing mortgage amounts that are 70% or less than the value of a home as “safe” following a proposal from Wells Fargo. This is an important threshold because it could be the break point for a new rule that’s yet to be implemented. The rule, part of the Dodd Frank bill, says that

Is 30% Down Payment A “Safe” Loan For Regulators?

Regulators are eyeing mortgage amounts that are 70% or less than the value of a home as “safe” following a proposal from Wells Fargo. This is an important threshold because it could be the break point for a new rule that’s yet to be implemented. The rule, part of the Dodd Frank bill, says that

Freddie Mac 2011 Outlook: Slow Start But Better News Ahead

In yet another downward revision, Freddie Mac estimates that mortgage originations will total $1.05 trillion this year, down from its projected $1.2 trillion last month. Most of this comes as rates rise and refinancing decreases: Freddie said refinancing made up 69% of the total $1.55 trillion in home mortgage originations in 2010, but are expected

Freddie Mac 2011 Outlook: Slow Start But Better News Ahead

In yet another downward revision, Freddie Mac estimates that mortgage originations will total $1.05 trillion this year, down from its projected $1.2 trillion last month. Most of this comes as rates rise and refinancing decreases: Freddie said refinancing made up 69% of the total $1.55 trillion in home mortgage originations in 2010, but are expected

Consumer Debt “Only” 118% Of Disposable Income vs. Peak of 130%

In a recent report, the Federal Reserve Bank of San Francisco said low interest rates, lax lending standards, the proliferation of exotic mortgage products, and the growth of a global market for securitized loans promoted increased U.S. household leverage (as measured by the ratio of debt to disposable income) to an all-time high of 130%

Consumer Debt “Only” 118% Of Disposable Income vs. Peak of 130%

In a recent report, the Federal Reserve Bank of San Francisco said low interest rates, lax lending standards, the proliferation of exotic mortgage products, and the growth of a global market for securitized loans promoted increased U.S. household leverage (as measured by the ratio of debt to disposable income) to an all-time high of 130%

Inflation & Retail Sales Data Confirm Consumer Caution, Keeps Rates Low

After a better rate day yesterday due mostly to a well-received 30yr bond auction, rates are even today after consumer inflation, retail sales, consumer confidence, and bank earnings figures. Following yesterday’s slightly hotter than expected business inflation report, today’s consumer inflation report confirms a relatively flat inflation environment—which helps keeps rates low. December’s consumer inflation