ArchivesFollowing this scenario, mortgage rates would also drop due to the anti-inflation stance. The downside to this rosy picture is that a stronger dollar would make foreign investors less likely to buy US Treasuries and Mortgage Bonds, because their home currency would be worth less than it was.
I still think the FOMC stands pat and tries to move the markets with its words, rather than with a rate move. Stay tuned.
[ 1 comment ] ( 14 views ) | permalink |
( 3.1 / 715 )The Federal Reserve Open Market Committe (FOMC) amd Chariman Bernanke meet today and tomorrow to discuss monetary policy. Conversation has turned from the series of rate cuts the FOMC has used to boost the economy out of recession (yes, it appears that it's true) to when the FOMC may apply a rate hike to stem the tide of inflation.
The 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.
[ 1 comment ] ( 5 views ) | permalink |
( 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.
[ 1 comment ] ( 31 views ) | permalink |
( 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.
[ add comment ] | permalink |
( 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.
[ add comment ] | permalink |
( 2.9 / 431 )Next
