mortgage markets

Looking Back And Looking Ahead : June 2, 2008

June 2, 2008

Mortgage rates rocketed higher last week, stunning active home buyers and mortgage rate shoppers. Some conforming mortgage rates rose by as much as three-quarters of a percent before Friday’s closing. Even in a year in which mortgage rates have been extremely volatile, last week’s spike was a large one. The main driver of last week’s […]

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Looking Back And Looking Ahead : April 28, 2008

April 28, 2008

Mortgage markets lost ground last week on inflation concerns and a general feeling that “the worst may be over” on Wall Street. As investors moved money into the stock market, mortgage rates ticked higher for the second straight week. The biggest story from last week was the rising cost of gasoline. Rising energy costs combined with rising […]

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Looking Back And Looking Ahead : April 14, 2008

April 14, 2008

Through 5 days of see-saw trading, mortgage rates ended last week relatively flat; the downward tick into Friday’s close was a boon for home buyers this past weekend. It may be short-lived, however. Oil continues to sit near all-time highs and a slew of inflation-related data is crossing the wires this week. When inflation pressures are […]

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Looking Back And Looking Ahead : April 7, 2008

April 7, 2008

Mortgage rates edged lower last week, buoyed by a weak employment report for March. After shedding 80,000 jobs last month, the number of working Americans is lower by 232,000 so far this year. Many pundits are claiming these figures are proof of a U.S. economic recession but it’s important to keep the data in perspective. […]

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Recession or Inflation? Even Fed Members Don’t Know For Sure.

March 5, 2008

With Friday’s jobs report looming, mortgage markets are especially skittish about whether the economy is in a recession, or facing inflation. Four Fed speakers Tuesday did little to quell the debate: 9:00 A.M.: Fed Chairman Bernanke stayed on message that foreclosures and falling home values are dragging down the economy. 10:00 A.M.: Fed Vice Chairman […]

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Looking Back And Looking Ahead : February 25, 2008

February 25, 2008

It’s a big week for mortgage markets (again) and that should cause rates to fluctuate wildly (again). The volatility we’ve seen since December has not been for the faint of heart.  Even this past Friday, as mortgage rates were poised to end the week lower, a late-afternoon stock market rally reversed it. In the last […]

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Tuesday May Have Marked The Unofficial End Of Low Mortgage Rates

February 20, 2008

For homebuyers and homeowners expecting low mortgage rates this week, Tuesday marked the unofficial end to basement 30-year fixed mortgage rates. According to the market analysts at BestInfo, Inc., the 30-year fixed rate measured its largest one-day movement in more than 10 years Tuesday. Nationally, 30-year fixed mortgage rates increased 0.375%. Here is the “real […]

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Looking Back And Looking Ahead : February 11, 2008

February 11, 2008

Mortgage markets are conflicted about the U.S. economy and the confusion is impacting home buyers. If you’ve recently tried to lock a mortgage rate, you’ve probably experienced it personally. On one hand, reports of plunging sales suggest that the economy is slowing more quickly than expected. This is recessionary and tends to be good for […]

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It’s A Good Day To Have Your Mortgage Adjust

January 23, 2008

When the Federal Reserve lowered the Fed Funds Rate by 0.75% yesterday, it was in response to economic weakness that mounted since its last meeting December 11, 2007. By contrast, the mortgage markets meet every day. Because of this, mortgage rates had already “priced in” the weakness to which the Fed was reacting. This is […]

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The Week In Review (January 22, 2008) : What To Watch For

January 22, 2008

As promised, last week was heavy on data and on drama.  And mortgage rates continued their slide lower. This week, by contrast, is devoid of data and markets are already digesting the Federal Reserve’s surprise 0.750% rate cut this morning. Mortgage rates are falling in response, but not because of what the Fed did as much […]

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The Week In Review (January 07, 2008) : What To Watch For

January 7, 2008

Stock markets tanked last week behind high oil prices and weak employment data. Amid a sell-off that led to a 4.5% decline in the S&P 500, investors sought safety in the bond markets. As a result, mortgage bonds improved last week, driving some mortgage rates to their lowest levels in two years. This week, with […]

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The Week In Review (January 2, 2008) : What To Watch For

January 2, 2008

It’s a short, but heavy, week for mortgage markets.  Investors are returning to the fray after a few lighter-than-normal weeks and their return should bring some stability to mortgage rates. Last week, mortgage bond prices rose which, in turn, moved mortgage rates down. The main reason for last week’s rate improvement was the assassination of […]

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The Week In Review (January 2, 2008) : What To Watch For

January 2, 2008

It’s a short, but heavy, week for mortgage markets.  Investors are returning to the fray after a few lighter-than-normal weeks and their return should bring some stability to mortgage rates. Last week, mortgage bond prices rose which, in turn, moved mortgage rates down. The main reason for last week’s rate improvement was the assassination of […]

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The Week In Review (December 3, 2007) : What To Watch For

December 3, 2007

If you enjoy roller coaster rides, last week’s mortgage markets were a delight.  Up and down mortgage rates went, trying to find a balance between inflation and recession (or maybe neither). A major cue for markets last week came from a high-ranking Fed official who raised expectations for future cuts to the Fed Funds Rate.  […]

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The Week In Review (November 19, 2007) : What To Watch For

November 19, 2007

In a holiday-shortened week with no major economic data releases, expect worries about the credit markets and speculation about holiday shopping to take center stage. Last week was a mixed bag for the economy and mortgage markets responded in kind.  Rates were relatively unchanged. The news started with Wednesday’s Retail Sales report.  In showing a […]

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It’s Not Your Imagination : Getting A Home Loan Is More Challenging For Everyone

November 7, 2007

If it feels like mortgage approvals are harder to come by than in years past, that’s because it is. And we’re not just talking about sub-prime mortgages (for which the market has nearly vanished in just 12 months). According to a story on Marketwatch, mortgage guidelines are more challenging for everyone to meet — gold-star […]

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Retail Sales Data Gives Mortgage Markets Something To Chew On

October 15, 2007

Until this morning, mortgage markets had been somewhat dormant over the course of the week.  There was no new data for traders to chew, digest and/or spit out.  Mortgage rates sat flat because of it. Then, at 8:30 A.M. ET, the Commerce Department released Retail Sales data for September.  Mortgage rates are headed higher this morning on […]

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Jumbo Mortgage Rates Shed Some Of Their Risk, Rates Fall

October 11, 2007

As a sign that some normalcy is returning to mortgage markets, the premium attached to jumbo mortgage rates is getting smaller. A “jumbo”-sized loan is one that exceeds $417,000 on a single-family residence, among other criteria. Conforming 30-year fixed rate mortgages and jumbo 30-year fixed rate mortgages tend to move in the same direction over […]

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Making A Choice Of Mortgage Products Is Easier Today Than Most Days

October 11, 2007

In another sign that mortgage markets are a bit unpredictable lately, this morning’s mortgage rates are virtually identical for conforming fixed rate mortgages and conforming adjustable rate mortgages. This is an extremely uncommon market condition; usually, adjustable rate mortgages carry lower rates over their initial fixed rate period (i.e. 3 years, 5 years, 7 years) […]

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The Week In Review (August 6, 2007) : What To Watch For

August 6, 2007

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 […]

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