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

WeeklyBasis 05/09/05: Strong Jobs, Slightly Higher HELOCs

Rates/commentary for the week of May 9, 2005. Even with last week’s Fed rate hike and stronger-than-expected jobs growth report, rates open today only about .125% higher than the lows of the past month. Monthly jobs data is always interesting to me because of its counter-intuitive nature. Yes it’s true that an improved jobs picture

WeeklyBasis 04/18/05: Low Rates Means to Buy Now

Rates/commentary for the week of April 18, 2005. If you’re thinking about writing an offer on a new house, this is the week to do it. Fixed and ARM rates open down .25% this week on stock weakness and lower consumer sentiment last week. This sharp improvement has come as investors have dumped stocks for

WeeklyBasis 04/11/05: Rates Stay the Course… this Week

Rates/commentary for the week of April 11, 2005. Fixed and ARM rates open this week the same as last week, holding onto the dip we saw after the weak March jobs report. Prior to that, if you recall, rates had jumped up on Greenspan’s comments after the March 22 FOMC meeting. He talked of how

WeeklyBasis 04/04/05: Rates Down, Prepare for Greenspan

Rates/commentary for the week of April 4, 2005. Fixed and ARM rates are down .125% this week, providing relief from the .375% uptrend of during March. Rates dropped Friday after the jobs growth report came in much weaker than expected (110k new non-farm payrolls vs. 225k projected). This is a signal to investors that the

Is Renting A Home Better Than Buying?

Last month, The Economist published a study (with Barclays Capital) claiming it’s better to rent than buy right now. The publication is eminently credible, but this claim warrants some Bay Area perspective. There may be property bubbles in “certain areas” as even Fed Chairman Greenspan has acknowledged. However, Greenspan and Economist editors tend to make

The Rate Picture For 2005, Part 2

This month, we will continue on our 2005 rate preview topic from last month. Last time, we covered broader market factors that move rates. This time, we will make some predictions of our own based on the market data available. We will begin with predictions for fixed and ARM loan rates, and then follow with

The Rate Picture For 2005

By the time you read this, Wall Street economists will have offered 2005 market outlooks ranging from doom to boom. If you’re a home buyer or owner, it can be difficult to discern the interest rate picture from all this noise. So we thought we’d simplify things for you. Not only to give you a