WeeklyBasis 08/01/05: Rates Still Historically Low

Rates open this week up another .125% across the board, bringing the 4 week total to about +.45%. Last week I said Friday’s 2Q GDP (economic growth) figures would help determine whether rates would keep moving up or not. GDP was 3.4%, right at expectations. But the hot housing and manufacturing data caused investors to

WeeklyBasis 07/25/05: Slight Rate Hike, Bonds Sell Off

Rates open this week up about .125% across the board, bringing the 3 week total to about +.30%. Rates held steady on Greenspan’s economic comments before Congress last week, but then bond markets sold off on the news of China removing it’s currency’s peg to the U.S. dollar. When bonds sell, prices decrease and yields

WeeklyBasis 07/12/05: Unemployment at Four-Year Low, Rates Rise

Since coming down the last week in June, fixed and ARM rates are back up about .25% this week. Much of this increase came after Friday’s employment report which showed a four-year low for unemployment. This improved jobs picture is a signal of a stronger economy, and this causes investors to dump bonds for stocks.

WeeklyBasis 06/27/05: How The Fed Affects Your Rates

Rates/Commentary, for the week of June 27, 2005. Rates open down by almost .25% this week. Interesting that this happens right before the Fed’s .25% rate hike this Thursday from 3% to 3.25%. Here’s what’s going on: The Fed Funds Rate is what the nation’s Federal Reserve banks charge each other on overnight lending to

WeeklyBasis 06/20/05: Possible Rate Hike Next Week

Rates/Commentary, for the week of June 20, 2005. Since I didn’t do a report last week, I’ll just cover both weeks so you’ve got what you need to keep your clients informed. 30-yr and ARM rates are up .125% in the past 10 trading days. Rates were actually up about .25% last week, but the

WeeklyBasis 05/23/05: No Bubble with Record Home Sales?

Rates/Commentary, week of May 23, 2005. Rates are holding to lows from last week. This week’s data includes Fed meeting minutes Tuesday, which will give us a follow up on last week’s inflation data; existing and new home sales Tuesday and Wednesday; and personal income and spending Friday. Should be no surprise from the record

WeeklyBasis 05/16/05: Fixed is Fixed, ARMs Down

Rates/Commentary, week of May 16, 2005. Fixed rates are steady over last week and ARMs are down about .125% as mortgage bonds and especially Treasury bonds have rallied. Despite the Fed raising the overnight bank-to-bank lending rate by 2% since last June, the open markets are not following this benchmark rate. Markets trend have driven