Possible Bad Outcomes Of Fed Policy We began the year believing that rates were heading higher, with the Fed “tightening” and making credit costs higher – but this tightening cycle will be different. There are two policy decisions for the FOMC to make, the first being increasing short term rates, but also having to deal
10yr Note
Rates Up This Morning, Slow Economic Week Last week rates were moved around by economic data. By Friday rates had improved slightly, and locks appeared to be picking up a little, but then a better-than-expected employment number pushed them higher. Fortunately for mortgage rates, the spread between them and the 10-yr Treasury (still a benchmark,
Update on State & National Mortgage Licensing The SAFE Act continues to weigh on some agents’ minds. Different states have different interpretations. In general, the SAFE Act requires all mortgage loan officer license applicants to complete 20 hours of pre-license education, including three hours of federal law and regulations, three hours of ethics, including fraud,
There are certain elements of economic analysis that elude or bore many consumers. One of them is the yield curve. But the yield curve is pretty easy to understand and it’s very important for how consumer credit—like credit cards, car loans, mortgages, etc.—is priced. A yield curve is a simple line graph plotting short to
Rates Up On Better Economic News, Lighter Volume What the heck happened to rates yesterday? Rates are back to October levels, the yield on the 10-yr Treasury went up above 3.60% (a technical support level), and the yield curve continued to steepen since overnight and short-term rates are still near 0%. (And many feel a
Greetings from San Diego, where, coincidentally, there is a national mortgage banking conference. Although I didn’t see any chains of mortgage banker types forming conga lines in any hotel lobbies, the mood here has improved since the last few conferences, and most are cautiously optimistic. There is still the “Hey, congratulations, we’re still in the
Greetings from San Diego, where, coincidentally, there is a national mortgage banking conference. Although I didn’t see any chains of mortgage banker types forming conga lines in any hotel lobbies, the mood here has improved since the last few conferences, and most are cautiously optimistic. There is still the “Hey, congratulations, we’re still in the
Why do people constantly return to the refrigerator with hopes that something new to eat will have materialized? Is that like economists and analysts continuing to go back to the news about the economy hoping something is better? Yesterday’s Beige Book, which summaries the economic activity in the 12 Fed regions here in the US,
I guess that the economy is not doing that badly if someone wants to pay $4.5 million for a gravesite. You can check it out on eBay, but the bidding started at $500k and has skyrocketed. The lady is selling the crypt out from under her dead husband, who is resting in peace above Marilyn
Before school ended, I noticed that one of my daughter’s homework assignments (in “Romance Languages”) was not turned in. When I asked her what happened to it, she replied, “Canis meus id comedit.” (“My dog ate it.”) Click the link for more handy Latin phrases (like “I never received that buy-back request!”). Old School Mortgage
Over the weekend I was in the express lane at the store quietly fuming. Completely ignoring the sign, the woman ahead of me had slipped into the express check-out line pushing a cart piled high with groceries. Imagine my delight when the cashier beckoned the woman to come forward looked into the cart and asked
Rates Rising On Economic Optimism, Jumbo-Conforming Spreads, Enough Writedowns-Now for Some Writeups
I was driving along the other day with my son and daughter, listening to the radio about yet another company that was laying-off employees. My son said, “The economy is so bad that McDonalds is now selling the ¼ ouncer, and parents in Beverly Hills fired their nannies and learned their children’s names.” Not to
Over the weekend my daughter and a friend had a lemonade stand on the street. They weren’t selling much lemonade for 50 cents a cup, so they decided to increase the price to 75 cents a cup. I told them that is not how economics works. My daughter replied, “The price of a postage stamp
What Can The Yield Curve Tell Us About The Economy? What is the yield curve, and why should anyone care about it? Yes, the stock market is rallying, in part because some corporate earnings are not as bad as expected, but also because many feel that the stock market “looks ahead” into future business patterns.
The other day a Radio Shack employee was arrested after punching a customer who was trying to return an item. The employee was charged with assault, but since it’s Radio Shack, battery was not included. (Bah da bum!) Rates Up on Economic Optimism What is the deal with these interest rates? Or perhaps the better
Stocks, Especially Banks, Rally On Stress Test Results I am the first to admit that if I had to make a living as a day trader, I would be bankrupt within a month. Yesterday was a perfect example. Bank stress test results have been leaked out, showing, for example, that Citi, Bank of America, and
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