Julian Hebron

A Wintry Summer For The Economy

The economy was growing steadily earlier in 2004 , but cooled off significantly this summer. Nevertheless, the Fed continues to wean us from overly-cheap money. They’ve raised the benchmark Fed Funds Rate by a half-point to 1.5% since June 30. Interestingly though, mortgage rates have held close to their lows. This month, I wanted to

How Are Mortgage Rates Derived (Part 2)?

Last month we talked about how mortgage rates are derived. The question we got most was: If long-term, fixed rate mortgages are tied to mortgage bonds rather than the Fed Funds rate, then what is my adjustable rate mortgage (ARM) tied to? And what is my Home Equity Line of Credit 2nd mortgage tied to?

How Are Mortgage Rates Derived?

You can’t avoid news about interest rates lately, and there’s been lots of questions about how mortgage rates are actually derived. So let’s go beyond the headlines and help you better understand rates. Whether you are truly interested, or just want some good cocktail party tidbits, we hope you find this useful. Just be aware

WeeklyBasis 03/22/04: Terrorism in Spain Affecting Rate Outlook

Rates/commentary for the week of March 22, 2004. I am back in the saddle after my wedding and two amazing weeks in Hawaii. While I was away, a dismal jobs report caused rates to drop below all-time lows from May 2003. This news would usually correct itself as investors realize all other economic fundamentals are

Real Estate Tax Tips For 2003 Filing

We know tax season can be a confusing time, so we hope the topics below will come in handy right now, and will also give you some things to think about as you fine tune your tax strategy for next year. Tax Formula for Primary Residence The following example explains mortgage interest and property tax

WeeklyBasis 02/23/04: Oil Prices and Bond Sell-Off Keeping Rates Low

Rates/commentary for the week of February 23, 2004. Higher-than-expected consumer prices (CPI) released Friday caused a slight bond sell off, but rates held near all-time lows for today’s open. Higher CPI usually means inflationary pressure and higher rates are looming, but Friday’s figures were due largely to oil prices which tend to include artificial valuations

Marketweek 02/02/04: Greenspan’s Groundhog Day Forecast

Rates/commentary for the week of February 2, 2004.  Punxsutawney Phil, one of the world’s preeminent forecasters, saw his shadow this morning which means six more weeks of cold conditions.  And with 4th quarter GDP coming in colder than expected on Friday, preeminent forecaster Alan Greenspan seems to think that the economy is safe from inflation,

WeeklyBasis 01/26/04: Fed Meeting This Week, Expect No Change

Rates/commentary for the week of January 26, 2004. Rates opened near all-time lows Monday, then rose about .125% as investors sold bonds (which pushes yields up) to fuel a stock rally on positive earnings news. As earnings continue to pour in this week, we may see more of the same. In addition to earnings, the