Three weeks ago, this report said “perhaps it’s early to ring alarm bells when rates are still in the 4s” but here’s an update: December 3 rates were .625% higher than they were October 8, which means a borrower pays $184 more per month on a $500,000 loan. Consider the alarm bell sounded. Here’s why…
China
Stocks are rallying and bonds are selling off on three events today that signal improving economic conditions and inflation pressure. Rates rise when bond prices drop in a selloff. Stocks are way up (Dow +228) and bonds are way down (3.5% 30yr FNMA -72 basis points) on better than expected jobs growth numbers from payroll
Stocks are rallying and bonds are selling off on three events today that signal improving economic conditions and inflation pressure. Rates rise when bond prices drop in a selloff. Stocks are way up (Dow +228) and bonds are way down (3.5% 30yr FNMA -72 basis points) on better than expected jobs growth numbers from payroll
Josh Brown at TheReformedBroker is fascinated by and scared of the Chinese growth story for good reason. On the truly scary side, he highlights the home market paragraph below from David Leonhardt’s NYT feature on China. Post-boom U.S. Realtors take heart: you’ve (probably!) never resorted to setting up shop on the sidewalk. This reminds me
Perhaps it’s early to ring alarm bells when rates are still in the 4s, but they’re up .375% since October 7-8, which means a borrower pays $110 more per month on a $500,000 loan. Back then, mortgage bonds hit record price levels on rumors the Fed would announce billions more in mortgage bond buying to
Perhaps it’s early to ring alarm bells when rates are still in the 4s, but they’re up .375% since October 7-8, which means a borrower pays $110 more per month on a $500,000 loan. Back then, mortgage bonds hit record price levels on rumors the Fed would announce billions more in mortgage bond buying to
China said it would no longer keep its currency, the yuan, pegged to the dollar. Some credible sources say it doesn’t matter, but it does matter because it could cause U.S. interest rates to rise. It works like this: up to now, China has kept their currency weak relative to the dollar. This makes Chinese
Zero-point rates on 30yr fixed Conforming loans (up to $729k) begin this week up about .125% after touching record low levels the week of May 17, and rates on Jumbo loans (above $729k) are steady. Rates are holding just above record lows because global investors continue to be net buyers of Treasury and mortgage bonds
3-Week Rate Dip Ends On China’s European Commitment After enjoying a multi-week rally that brought mortgage rates to record lows since the Greek bailout-induced stock crash May 6, mortgage bonds are down significantly today (currently -44 basis points). As of now rates are up about .125% with mortgage bond pricing suggesting worse if today’s trading
Summary of Senate Bill’s Mortgage Provisions The big news du jour comes from Washington DC, where the Senate approved its version of overhauling our financial-sector regulations. The legislation passed the Senate 59 to 39 and must now be reconciled with a similar bill passed by the House of Representatives in December, before it can be
Lawmakers Solicit Consumer Comments On 7 Financial & Housing Reform Topics Do you want some input in financial reform? There are many ways to do this, and here is another. The public will have the opportunity to submit written responses to seven questions that will be published in the federal register online at www.regulations.gov. The
On the possibility of Fannie and Freddie going away, one clever rep wrote to me and asked, “Do we really need FNMA, FHA, and FHLMC when it is all government run anyway? They could start a new entity named “Federally Regulated Committee to Normalize Mortgage Securities”, or “FRCNMS” – pronounced “FRICKEN MESS”. IRS Definition of
Denver Pot Club Fun Fact According to news sources in Denver, where the City Council voted to regulate medical marijuana dispensaries, more applications have been received for licenses for selling pot than there are Starbucks coffee shops in the entire state, 390 versus 208. Fun with numbers… Mortgage Volume Projections for 2010 There seems to
China said today asked that “the US maintain its good credit, to honor its promises and to guarantee the safety of China’s assets.” This came after they expressed concern that the new administration is too aggressive about spending which may lead to inflation, which would erode the value of China’s US bond holdings. They’re now
Everyone is waiting to see what Barack Obama has got planned. We already know his economic plan. It’s designed to help small businesses that make under $250,000 a year…Like General Motors and Chrysler. $600b Mortgage Bond Investment By Fed Seriously, this morning rates have improved dramatically the Federal Reserve and Treasury Department unveiled hundreds of
Citing concerns about the ongoing global financial crisis, the Chinese government approved a 4 trillion yuan ($586b USD) economic stimulus package to include infrastructure and social welfare spending as well as investment directly in private businesses. They didn’t address this question of how the package would be funded. They also said that this active fiscal
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