From the monthly archives: September 2008

Mortgage Rate Update – September 30, 2008

On September 30, 2008 By

Stocks plunged yesterday.  That’s not news, that’s a headline.

In quick summary, Congress votes down a $700 Billion rescue plan.  Dow Jones has single-worst loss in 112-year history.  Investors buy Treasuries and mortgage bonds alike.

Fast forward to today:  Market is volatile (no new news for 2008).  Mortgage bonds are down 78 basis [...]

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Mortgage Rate Update – September 29, 2008

On September 29, 2008 By

Well, it’s Monday again.  From Fannie and Freddie bailouts to Lehman Brothers’ collapse, it seems like Monday’s have been busier than ever.

Well, Wachovia is now gone.  With the help of the FDIC, Citigroup has agreed to purchase Wachovia, one of the nation’s largest banks.

The big news of the day will [...]

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Mortgage Rate Update – September 26, 2008

On September 26, 2008 By

Another day of big news.  Washington Mutual was seized by the federal government and assets were sold to JP Morgan Chase for $1.9 Billion overnight.  The largest thrift is now gone.

The proposed $700 Billion rescue plan skidded to a halt overnight after hundreds of economists called the program potentially risky if not studied [...]

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Mortgage Rate Update – September 25, 2008

On September 25, 2008 By

The big news of the day is the solution to the bailout plan.  In early news, Durable Goods were lower than expected and Initial Jobless Claims saw numbers not seen in seven years.

All signs point towards a bad economic time and the news of the day is part of a reaction.

Here’s how we [...]

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Mortgage Rate Update – September 24, 2008

On September 24, 2008 By

Mortgages received a boost today, as did the rest of the financial market, that Warren Buffet’s Berkshire Hathaway is making a $5 billion investment in Goldman Sachs.  This is bring confidence to the sector that, if Buffet is coming in, things must be at least okay.

The $700 billion Fed & Treasury plan met significant [...]

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Mortgage Rate Update – September 23, 2008

On September 23, 2008 By

Mortgage bonds are trading higher (meaning lower rates) today after a pretty brutal day yesterday.  Oil and gold both had record rallies in place for much of the day.  This was largely based on a weaker US Dollar due to $700 Billion bailout that will require a massive sale of US Treasuries to cover the [...]

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Zone of possible agreement

On September 23, 2008 By

describes the potential common ground between two negotiating parties. Each party in a negotiation should have points on which they will and will not compromise. The zone of possible agreement encompasses the points on which both sides are willing [...]

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Zeros – Zero-coupon CDs

On September 23, 2008 By

Zeros, or zero-coupon CDs, are time deposits that pay interest at maturity, rather than at regular intervals.

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Zero-lot line

On September 23, 2008 By

When a house is built on a lot so that one wall is on the property boundary.

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Zero-down-payment mortgage

On September 23, 2008 By

A zero-down-payment mortgage is a real estate property loan that finances 100 percent of the purchase price. A borrower who funds a zero-down-payment mortgage will be required to purchase private mortgage insurance.

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