Higher 2010 Rate Forecasts All Wrong At the start of the year, not only were the smartest guys in the room talking about how mortgage rates would go up when the Fed ended their $1.2 trillion purchase program, but that rates would be going up in general given the expected economic rebound. Of course, neither
August 2010
Here’s an NYT op-ed with some useful history of the 30yr mortgage. It also discusses some ideas about flexible mortgages, where for example, a borrower can have a 30yr fixed that could have interim periods of interest-only when a borrower needs it. These ideas are not new. Robert Shiller, of Case Shiller home price index
Loan Costs Up 37% Nationally Loan costs are up 37% nationally this year, and 41% in Illinois, according to Bankrate Inc. Lenders absorbed a certain portion of this increase as the government began requiring lenders to provide more accurate good faith estimates of closing costs or face penalties. Nationally, average estimated closing costs rose to
Rates Lower Still Mortgage prices rising (agency MBS’s, not non-agency stuff). Not only are all rates dropping, but the spread between Treasury and MBS’s is still fairly tight – further helping mortgages. The demand for agency MBS cash flows is strong, but the primary market can’t churn out enough supply. Investors know that, on average,
A few days ago the FDIC announced the creation of a new office to help implement ‘Too Big To Fail’ provisions of the 2300 page Dodd-Frank Finreg bill: The Office of Complex Financial Institutions. Seems redundant—isn’t the root of their job to oversee a complex system? Even if the office is focused on understanding firms
Normally this report is measured, but it’s hard to temper the current situation: we’re in an unprecedented government credit explosion. Low rate bonanza. Full tilt refi boom. Best time for homebuyers who select the right deal. The ironic reason for this boom is that is that global developed economies are so unstable because of the
Thomas Hoenig is a voting FOMC member who’s voted against keeping rates low at every Fed meeting in 2010. He gave a speech today providing his rationale for why he thinks U.S. monetary policy is too accommodative. The full speech is below—fairly dismal but all good points. His basic premise is that using loose monetary
As financial markets froze this very week in 2007, the real-time media market was catching fire. So instead of summarizing it all with a 140 character Tweet, below we offer some broader perspective by bringing everyone’s favorite obsessions together: mortgage rates, Twitter, and iPhones. Stat-filled timeline and rate chart are included. Home prices started falling
As financial markets froze this very week in 2007, the real-time media market was catching fire. So instead of summarizing it all with a 140 character Tweet, below we offer some broader perspective by bringing everyone’s favorite obsessions together: mortgage rates, Twitter, and iPhones. Stat-filled timeline and rate chart are included. Home prices started falling
Here’s the latest record low rate chart. Click chart for full size. And visit this link for the fine print on displayed rates.
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
Thanks JW for sending this Craigslist ad for a Sweet Ass 2001 Ford Taurus, one of the all-time great Craigslist ads (with pictures) that begins like this: Holy crap! What kind of badassary is this?! A 2001 Black Ford Taurus! Get the hell out of here! This car is a god amongst other, smaller cars.
Currently the Dow is down 120, S&P is down 15, and mortgage bonds are up 25 basis points, bringing rates down by about .125% following the Bureau of Labor Statistics report showing only 71k private payrolls were added to the U.S. economy in July, and June was revised down 100k. Additional commentary and charts below.
FHA Mortgage Insurance Hike Oct. 4, Fannie’s Negative Net Worth, Treasury Stance On Underwater Refis
FHA Mortgage Insurance Increasing October 4 FHA mortgage insurance will be increasing as of October 4, 2010 because the FHA insurance pool only has $3.5 billion in cash and Treasury securities left in its “capital reserve account” The money sitting in the CRA represents a 71% decline in just the last three months. The Mutual
How To Leave Your Underwater Home Fannie Mae launched a new consumer website, KnowYourOptions.com, to educate homeowners about their options to avoid foreclosure and how to get help. There’s an accompanying site for lenders who want marketing materials to promote these KnowYourOptions features. Treasury Auctions Next Week The Treasury will sell $34 billion of 3-yr