Another day, another batch of Gloom-and-Doom stories in the news. Remember to keep a level head — the media’s job, in part, is to sell newspapers and capture eyeballs. Using the word “crisis” repeatedly is one way to meet that goal. A few facts to keep it all in perspective: There are still BILLIONS of [...]
As we discuss over and over again, mortgage interest rates are determined by the price of mortgage bonds. Nothing else, and nothing more. The challenge in that truth is that mortgage bond pricing is not very accessible to the general public. This includes the press. As a result, the media tends to use a government [...]
Industry trade magazine Inside B&C Lending pegs the 2006 dollar volume of new sub-prime loans at $640 billion. According to the Real Estate Charts chart above, 78% of those dollars were in 2-year adjustable loans. A loan of this variety is often called a 2/28 (“two twenty-eight”). A 2/28 originated in 2006 will reach its [...]
It’s been on the news a few times lately, so let’s address a key misconception about the Fed and its relationship to mortgage rates. The markets now anticipate that the Fed will lower the Fed Funds Rate within the next 45 days. As a mortgage rate shopper, there’s not much reason to be interested. That’s [...]
After all the volatility and talk of a global crumble, all of the major U.S. stock indices posts gains last week. It just goes to show you what a strange roller coaster ride we’re all on. Last week, the market bounced its way through: The Fed’s press release stating that inflation is still a concern [...]
Any security — stock, bond, or otherwise — has a specific risk associated with it. Based on that risk, an investor decides whether or not the price is worth paying. If the security is a “good value”, an investor will buy it. If not, the investor will pass. Until recently, mortgage bonds were considered a [...]
“If only I knew what my street was like before I bought the house!” Ignore the statewide statistics, forget the city figures. Phooey to the neighborhood. Reinforcing the notion that all real estate is local, meet Street Advisor, the definitive guide to America’s many streets. Unfortunately, there just hasn’t been enough helpful information catalogued just [...]
The Fed left the Fed Funds Rate unchanged again today for the ninth time in a row after 17 consecutive hikes. The Fed once again highlighted inflation containment as its chief concern while noting that pressures on the economy appear to be moderating. This is good news for holders of home equity lines of credit [...]
The stock market bounced back yesterday from Friday’s losses, adding 287 points. There wasn’t much activity in mortgage rates, though, which remained relatively flat. Right now, it’s all eyes on the Federal Open Market Committee and their 2:15 P.M. ET press release. For as many people that want the Fed to make a powerful statement [...]
In a week in which several high-profile mortgage lenders closed their doors, not all news was bad. Mortgages rates for home loans bought by the quasi-government groups Fannie Mae and Freddie Mac actually dropped a bit. If you only watched the news, or market commentary on CNBC, though, you likely have the wrong idea about [...]
