interest rates

The Biggest Banks Are Eliminating The Most Prevalent Sub-Prime Loan

July 24, 2007

Mixed news from the sub-prime sector, depending on how you look at it. Many lenders discontinuing their short-term ARM products. Washington Mutual, Countrywide and Wells Fargo are among the sub-prime lenders no longer offering the 2/28 mortgage product. The “2/28” is a adjustable rate mortgage in which the interest rate remains fixed for two years, […]

Read the full article →

Before You Rush To Make Bi-Weekly Mortgage Payments…

July 11, 2007

Before paying down your mortgage balance with extra principal payments, be sure to plan carefully. The biggest risk in lending for banks is that you will suddenly stop paying your mortgage.  In that event, the banks hope that you owe them as little as possible against the value of the home. That way, your mortgage balance […]

Read the full article →

Three Reasons Why Mortgage Rates Are Higher This Morning

July 5, 2007

Mortgage markets are making like last night’s fireworks, exploding in the sky with a bang. There are three main factors pushing rates higher today: Bank of England raised their interest rates by 0.25% and foreshadowed future increases European Central Bank Chairman Jean-Claude Trichet said that inflation is “likely to rise again significantly towards the end […]

Read the full article →

In The Summer, Mortgage Rates Can Change More Swiftly Than Usual

June 20, 2007

It was another favorable day for mortgage rates yesterday as average housing data and momentum trading carried bond prices higher. Bond prices up, mortgage rates down, of course. All things considered, mortgage bonds should not have moved as much as they did.  But, this is the summer season and in the summer, fewer traders show […]

Read the full article →

Federal Reserve: Inflation Remains “Uncomfortably High”

May 31, 2007

Tomorrow, the fireworks begin.  Or, continue, depending on your point of view. After a span of several weeks in which mortgage rates have steadily increased, markets are gearing up for a heavy day of data that could confirm the worst fears of investors everywhere: the U.S. economy is not slowing down. The Fed’s May meeting […]

Read the full article →

How Lenders Protect Against Losses When Mortgage Markets Deteriorate

May 23, 2007

The graph at right shows the path of mortgage rates in May.  The rate run-up continued yesterday. After a fairly tame start, yesterday’s action rapidly slipped away from mortgage rate shoppers beginning at 12:00 P.M. ET. Many lenders responded by invoking their right to a mid-day reprice as well, with some adding as much as 0.25% […]

Read the full article →

When You Can’t Pay The Mortgage, Pick Up The Phone Pronto

May 15, 2007

According to RealtyTrac, one out of every 783 homes in the United States filed for foreclosure in April.  This is down one percent from March, but up 62 percent from one year ago. If you are struggling to pay your mortgage and have not yet entered foreclosure, the best thing to do is to call […]

Read the full article →

Why Long-Term Mortgage Rates Are The Same As Short-Term Mortgage Rates

February 16, 2007

Interest rates are currently inverted, a market situation in which the longer you commit to lending your money, the less your return on investment.  It’s counter-intuitive so let’s delve a little deeper. Imagine if a friend asked you to borrow money for two years and you charged him interest on that money.  There are some […]

Read the full article →

It Was “Happy Holidays” for Retailers in December

January 12, 2007

For all of the talk about the slowdown in consumer spending, it appears that this Holiday Season was a winner.  This morning’s Retail Sales report doubled economists’ expectations by showing 1.0% growth. This is just one more inflationary pressure in the economy and makes it less likely that the Fed will lower the Fed Funds […]

Read the full article →

How the Unexpected Bank of England Rate Hike Can Impact U.S. Mortgage Rates

January 11, 2007

In a “surprise” move, The Bank of England raised its benchmark by 0.25% to 5.250%. Only one of 50 economists surveyed had predicted the increase and its unexpected nature played a key role in moving mortgage rates higher today on this side of the pond. The Bank of England is equivalent to our own Federal […]

Read the full article →

How Inverted Yield Curves Defy “Normal” Financial Behavior

January 8, 2007

Interest rates remain inverted, a market condition in which the longer you commit to lending your money, the less that you earn on your investment. Why is that a big deal? Imagine if a friend asked you to borrow money for two years you charged him interest on that money. We can list some of […]

Read the full article →

Next Entries →