ArchivesThe FOMC is walking a very narrow line, with raging food and energy prices on one side and the need for accomododative borrowing and liquidity on the other. Hopefully the FOMC will get it right.
Mu guess is that they will not change rates, but make a strong statement in the meeting minutes that they are at the ready with a rate hike if inflation can't be controlled.
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( 3 / 710 )Mortgage rates have fallen again. A 30 year fixed rate is now 5.75% with 0.00 points. Rates haven't been this low in a number of months. If you are thinking of buying or refinancing, now is the time to start the process. Even if you think rates may continue to go down, making your mortgage application now will allow your loan officer to monitor interest rates for your and alert you if the downward rate trend changes. This should help you lock your rate at the right time to take advantage of the lowest rate.
I am returning from a family vacation and will be in the office on Monday the 7th. I will continue with regular blog entries then.
Have a great weekend.
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( 2.9 / 998 )The Mortgage Market Meltdown. Such an incendiary phrase, no pun intended. People immediately think the worst, and possibly rightfully so. The truth of the matter is that the problems in the mortgage market have come back to bite Morgan Stanley again.
Morgan released a statement announcing they have a 4th quarter loss of $3.6 billion, due mostly to a $9.4 billion write-down form their investments in mortge backed securities. Now that is a lot of money. They addressed their problem by selling the Chinese Government a 9.9% share of the company for $5 billion. The new CEO, John Mack, blamed the loss on a "small team" of employees that have been fired. Always easy to blame someone that is no longer around.
I find the size of the amounts amazing. Also, Morgan's stock price rose $2 on the news of the cash infusion from China. Interesting as well. The main impact of this news on Main Street is the sames as it has been. Certain high risk mortgage loans have ben drastically changed or eliminated.
The good news is also a recurring theme. There are still many, many programs available and rates are great.
Have a wonderful day.
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( 3 / 992 )I know a lot of the information I've shared here hasn't been very uplifting. It's time for a change.
As I mentioned yesterday, the mortgage market has been changing daily, but one of the most important things associated with mortgage loans has remained very positive. Interest rates have been wonderful. Thirty year fixed rates have been between 6.00% and 6.25% (with 0.00 points) for an extended period of time, and recent activity in the mortgage market suggests that rates will remain very attractive. A borrower can even get a rate of 5.50% by paying an upfront fee (points). Fifteen year fixed rates have been 5.875% for quite some time.
Have a great day.
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( 2.9 / 431 )The mortgage industry has been phenomenally fluid for the past 5 months. Lenders are still closing their doors, while others are opening new Regional Offices. Loan programs are changing daily, with guidelines typically tightening. Some programs just go away.
We all remember the "Liquidity Crisis" that happened this summer, and some people believe we still have the same problem. My opinion is that there is plenty of liquidity, read money, on Wall Street available to purchase mortgage loans. I think the institutions that would normally buy mortgage backed securities still have the cash, they just don't want to buy them.
This is especially true for Jumbo Loans (loan amounts above $417,000) at the present time. This summer, jumbo rates jumped from 6.75% to 8.00%. Then as the markets calmed, they dropped to 7.00%. Now they have climbed back to roughly 7.5%
All of this information leads me to my point, which is, don't wait and take the risk that the mortgage program which best meets your needs is no longer available or the rate has worsened. If you are looking to make a real estate purchase or refinance a mortgage, NOW is the time.
Have a great day!
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