Currently viewing the tag: "mortgage bonds"

Mortgage Rate Update for February

On February 17, 2011 By

We’ve retraced the highest mortgage rates since April 2010. According to Freddie Mac, last week saw the largest single week increase in more than a year. Last Thursday’s PMMS report showed rates higher by .24% and a national average of 5.05%.

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If unemployment moves lower, it is usually will mean that home values and mortgage rates move higher. If that’s the case, home affordability figures should drop from these unprecedented levels.

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In last week’s interest rate predictions, we discussed that a holiday trading week could be a momentum-driven week. It was.

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Mortgage rates have been falling since April, shedding more than 1 percentage point since the Refi Boom began creating interesting 30 Year v. 15 Year v. 5/1 ARM comparisons.

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What this means is that, when the market changes directions, it should change dramatically. A minor upgrade to economic forecasts would drive money into the stock market and out of mortgage bonds, pushing mortgage rates up very quickly.

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Mortgage rates have had a nice week.

We were staring at higher rates on Wednesday and then the week took a turn for the better. Wednesday afternoon saw the release of the April meeting minutes and it ignited a 2-day rally.

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Inflation and Mortgage Rates

On March 19, 2010 By

Home values are incredible from coast to coast right now.

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Mortgage rates improved on almost all loans for first time home buyers last week.

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are making a charge after last week’s five-day mess. Again, we want bond prices as high as possible to make rates as low as possible.  Green=Good, Red=Bad.  Last week was very bad.

Friday morning’s sell-off was incredible, but so too was the recovery off [...]

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