The Federal Open Market Committee adjourns from its 2-day meeting at 2:15 P.M. ET today. It’s widely expected that the Ben Bernanke-led FOMC will reduce the Fed Funds Rate by a half-percent to 0.500 percent. Fed Funds Rate cuts are meant to stimulate the economy by lowering borrowing costs for businesses and consumers; interest rates [...]

Mortgage markets improved last week, riding a steady stream of negative news into its best levels of the year. Day-to-day, mortgage rates priced across a very wide range, but managed to close out the week lower overall. Mortgage rates improving on “bad news” is a break from the trading patterns of September and October. Back [...]

A mortgage is a contract between a bank and borrower, defining the terms by which a home loan must be repaid. The paperwork, signed by both parties, includes provisions for things like: The interest rate The length of the loan The amount of money to be borrowed But, like all loans, a mortgage loan can [...]

It’s the age-old question for home buyers in need of a mortgage: Which is better: Fixed or ARM? Historically, the answer has hinged on a homebuyer’s desire to meet one of two mutually-exclusive mortgage financing goals: Get low mortgage payments for better cash flow Get long-term payment stability for better budget planning But because of [...]

For most Americans, mortgage interest paid on a home loan is tax-deductible in the year in which it was paid. With advance planning, therefore, homeowners can increase their 2008 tax deductions and limit their tax liability on April 15. The key is to make the January 2009 mortgage payment before the New Year begins. In [...]

Earlier this year and under pressure from the government, mortgage lenders made more than 200,000 loan modifications to delinquent homeowners. The modifications came in one of three forms, or a combination: Interest rate reduction Loan term extension Principal forgiveness But despite the modifications, as of October 1, more than half of the homeowners that received [...]

In a week in which mortgage markets struggled to find direction, mortgage rates edged higher overall. The weekly increase was the first since mid-November and it may signal higher rates as we head into 2009. The week’s most talked-about story hit the wires Friday. According to the government, the U.S. economy shed 533,000 jobs last [...]

According to the government, American businesses are cutting staff at an accelerated pace, most recently paring 533,000 jobs this past November. It’s the largest one-month decline since December 1974 and raises the year-to-date job losses to 1.9 million workers. However, there is a silver lining in the data for all Americans — both employed and [...]

Business television is abuzz this morning with talk of “four-point-five percent mortgage rates”; the clip above ran on NBC Today. The news stems from a leaked story that the U.S. Treasury will intervene in the mortgage market, lowering rates a full percentage point below their current levels. As cited by every journalist in every publication, [...]

For the 78th consecutive day, gas prices fell nationwide yesterday. At $1.81 per gallon, the average price at the pump is less than half what it was at its peak in July. And although gas prices vary by locale, the cost of a fill-up is worthy of national news. The main reason why national gas [...]