A Must Read “Fed’s Ability to Raise Rates is an Illusion”

Both Treasury Bonds and Mortgage backed securities carry interest rate risk, which means that the value of existing bonds will tend to fall as current interest rates rise. As a result, any rise in interest rates will immediately impact the value of this enormous portfolio. The Fed has to be very careful...

Mortgage Rates Weekly Review – June, 19 2009 – Rates Heading Lower (Chart)

Another positive week for Mortgage Rates. The Benchmark FNMA 30 YR 5% posted a positive 28bp improvement overall this week.  The newfound lack of confidence in the U.S. recovery coupled with the Geopolitical landscape are contributing factors to the resurgence in lower rates.  Fridays close is a positive...

Mortgage Rates June 5, 2009 – Week Review – I Hate When I Am Right!

Not much to say except is it over yet? As my colleges would say “Stop Being Chicken Little” although this time I might be right? Over the last eight (8) days MBS have been getting there you know what handed to them.  This does not translate good for consumer Mortgage Rates. End of market pricing 5.25%...

Mortgage Rate Forecast June 1, 2009 (Chart)

June 1, 2009 started as another brutal day in the Mortgage Market. On top of the negative bankruptcy news for GM Mortgage Rates increased after a nice head fake last Thursday and Friday.  After reaching as low as 4.375% on a 30 YR in May. Mortgage Rates came in like a lamb and left like a lion (see May 2009...

FED Sr. LO Survey Says….

The recent FED Sr. Loan Officer Survey provides a glimmer of hope for the Loan world. Although rates are low one survey stood out to me; the survey which reflects Sr. LO opinion that guidelines and standards are tightening.  Read the Full Report....