Mortgage bonds closed up 19 basis points today following a Fed meeting where they kept their low rate stance. Mortgage lender rate sheets didn’t decrease commensurately as lenders held the line ahead of a 10yr Treasury note auction Wednesday and a 30yr T-Bond auction Thursday. Lenders do this because longer-dated Treasury auctions compete with mortgage [...]
Posts Tagged ‘Thomas Hoenig’
Hoenig Dissents 4th Time As FOMC Votes To Keep .25% Overnight Rates. Record Low Mortgages Hold.
The Federal Open Market Committee voted today to keep the overnight bank-to-bank Fed Funds Rate steady at 0-0.25% and the overnight Fed-to-bank discount rate at .75%, citing subdued inflation that’s likely to continue for “some time.” For the fourth straight meeting in 2010, Kansas City Fed President Thomas Hoenig dissented on the belief that modest [...]
WeeklyBasis 6/1/2010: Rationale For Rate Lock Advisory
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 [...]
WeeklyBasis 4/2/10: Rates Up .25%, Lock Bias Continues. FHA Insurance Hiked .5%
Rates are net up .25% in the past 2 weeks, with rates up even higher on certain trading days. This WeeklyBasis report’s rate lock bias for the past two weeks continues into next week. Below is a recap of why rates have moved up and why they might continue up next week. Also remember that [...]
WeeklyBasis 3/20/10: Critical Economic Outlook Week Coming
Despite volatility last week that caused rates to move up and down about .2%, we ended the week even. Business and consumer inflation reports both showed that inflation is under control. The Fed reiterated this after their FOMC meeting Tuesday, and left overnight bank-to-bank and Fed-to-bank rates at .25% and .75% respectively.
Fed Holds Overnight Rates. Why Long Rates Are Poised To Rise.
The Fed just made it’s announcement following today’s FOMC meeting. All FOMC members except for Thomas Hoenig voted to leave the overnight bank-to-bank Fed Funds Rate the same at 0.25%. There was no reference to the Fed-to-bank Discount Rate, which is currently at 0.75% following a surprise 0.25% hike last month. As usual, the press [...]
Fed Keeps Bank-to-Bank Rates At .25% (Hoenig Dissented), Will End Mortgage Rate Stimulus March 31
The Fed held the overnight bank-to-bank Fed Funds Rate at a range of 0-0.25% and more definitively announced that they expect to wind down their mortgage bond purchases by March 31. They still said they will make a final decision on MBS buys according to market conditions, but they did say they’d wind down purchases [...]
