Fannie Mae

30yr vs ARM Rates, Spitzer Resigns, Stocks Gain Most In 6yrs

Anyone who has worked for a mortgage company in the last 8 months knows that any phone call that starts with the person asking, “Do you have a second?” or “Do you have a moment?” knows that the call will last significantly longer. In fact, studies of mortgage banks telephone call volume for the first

Fed Increases TAF to $200b, Home Equity At 1945 Levels

My parents bought their house in 1967, paid off their loan in 1997, and have no interest in this “reverse mortgage stuff.” It is often surprising how many own their homes outright. But last week the Federal Reserve (in their US Flow of Funds Accounts report) announced that Americans’ percentage of equity in their homes

Super Conforming Fixed by April 1, ARMs by May 1

Below is a news announcement about super conforming loans sent out by FNMA to mortgage banks. Looks like, for conforming fixed rate loans above $417k, they won’t start buying until April 1 … and for conforming ARM loans above $417k, they won’t start buying until May 1. It’s important for home loan borrowers to understand

MBS vs Treasuries, Thornburg, “Short Refis”

This market is tougher than a $3 steak! When the heck are mortgage prices going to improve? Why is the 10-yr Treasury down into the 3.5% range, yet conforming/conventional 30-yr loans, eligible for FNMA and FHLMC, back up into the 6% range? The widening that is occurring out to these levels, which statistically speaking happens

Will Higher Conforming Loans & Tax Rebates Prevent Recession?

Treasury Secretary Henry Paulson, along with the House, Senate and White House, has crafted a broad election year economic stimulus package which includes $150 billion in household and business tax breaks, and proposals to up conforming mortgage limits from $417,000 to as much as $729,250. The tax cuts could take a few months, but the

WeeklyBasis 01/07/08: Issues To Watch In 1st Quarter

Glad to say that my first WeeklyBasis of 2008 is good news! Fixed and ARM rates are down .375% from pre-holiday levels, and it seems to be sticking because of continued recession signals implicit in recent economic data. The volatility I talked so much about in the 4Q2007 may return and make me eat those

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