Jumbo and conforming rates open this week up about .125% on inflation concerns. Last week, the Producer Price Index showed 6.5% year-over-year inflation in the manufacturing sector due largely to energy prices. Today Consumer Confidence came in at a 16 year low due to consumer concerns about rising food and gas prices. America is alone
PCE Deflator
If the U.S. economy shows negative growth for two quarters, it’s widely considered to be in recession. With the housing market taking a toll on consumers, who account for two-thirds of economic growth, there is plenty of cause for concern about recession. At the same time, the economy can’t grow too quickly either, or prices
Whether you think “May Day” signifies International Worker Day, or a cry for help, a celebration of spring, or a day of political unrest, here we are. Four months of 2008 already gone, and what have mortgage rates done since the beginning of January. 30-yr conforming began the year at 6.125%, and yesterday they were
Fixed and ARM rates are up about .2% this week as bond markets start pricing in a possible end to Fed rate cuts. The results of this week’s FOMC rate policy meeting will be announced Wednesday, and markets expect a .25% cut to the Fed Funds Rate, which is a rate commercial banks charge each
Fixed and ARM rates are down about .125% this week following last Friday’s Personal Income & Spending report which includes the Fed’s favorite measure of inflation—Personal Consumption Expenditures. The PCE number showed that year-over-year inflation was 2%, within the Fed’s 1-2% target range. Tomorrow and Thursday the Institute for Supply Management releases monthly reports on
The US Department of Commerce released the February consumer income and spending report today. Incomes increased by 0.5%, more than expected. Spending increased by 0.1%, in line with expectations. And perhaps most important, Personal Consumption Expenditures, the Fed’s favorite measure of inflation, came in at 0.1% expectations, last month’s PCE was revised down, and that
As I was in the supermarket check-out line last night, staring absent-mindedly at the cover of the April issue of GQ magazine, I was brought back to reality by the clerk giving me my total bill. “Holy smokes!” When did food become so expensive? As it turns out, higher oil prices, bad weather, growing consumer
Fixed and ARM rates are about even following last week’s Fed meeting. Rates dropped about .25% for the two trading sessions ahead of the Fed meeting then rose right back up after the Fed cut the bank-to-bank Fed Funds Rate and the Fed-to-bank Discount Rate by 75 basis points each. These rates are to encourage
LENDER GUIDELINE UPDATES Last Friday Countrywide changed their conforming Fast & Easy, limiting it to 90% LTV and 80% CLTV where subordinate financing is used, and entirely eliminated their Equity Programs and House America program. Last week California’s Attorney General shut down four mortgage lenders for providing what he characterized as “illegal and unconscionable loans”:
Fixed and ARM rates are up by almost .5% since last week, and we’re still seeing .25% to .375% swings from day to day. Rates drop on recession concerns and rise on inflation concerns, and markets can’t decide which is the bigger issue. This is the reason for the volatility, and rates are up because
Fixed and ARM mortgage rates opened this week up about .125% following an extremely volatile holiday-shortened trading week. Rates were up and down about .25% every other day. This is a significant swing for a given week, let alone single trading days. This week looks to be more of the same as investors battle over
Fixed and ARM rates have been even for about a month despite all of the trouble with the sub-prime sector. A spill-over into the rest of the mortgage industry seems unlikely, especially if lawmakers can stop themselves from making new laws after the fact. In the face of new regulations, sub-prime borrowers wouldn’t stand a
Fixed and ARM rates open this week down about .125% after a volatile week last week. Last Tuesday, rates were up by as much as .375% but when slightly higher-than-expected Consumer and Producer price data came out Tuesday and Wednesday, investors fled stocks for the safety of bonds – this pushed bond prices up and
Rates and commentary below are for the week of November 24, 2003. Last week was the lowest rate week since all-time record lows in June. This could change by the end of the Thanksgiving holiday. Despite being a shortened market week, it is heavy on economic releases. Revised 3rd quarter GDP, Consumer Confidence Index, October’s