Bond Market Doesn’t Like Tax Cuts: Mortgage Rates Spike

December 8th, 2010 The Editor Posted in fixed jumbo mortgage, jumbo loan, mortgage rates No Comments »

Bond Market Revolt

The US Treasury bond market reaction to the Fed’s QE policies and to this disgrace of a budget proposal was swift and severe. I have a picture of it for you right here.



That is what the bond market thinks of Ben Bernanke’s plan to spur inflation but hold down treasury yields.

The ovals show today’s bond-market reaction to the budget deficit that Bernanke will no doubt monetize as part of QE III and QE IV when this round of “quantitative easing” blows up in his face.


Conforming Mortgages Went From 4.00% to 4.50% in the last few weeks. This is not helping housing or the economy at all.
Jumbo Mortgage Rates have moved from 5.00% to 5.375% in the last two weeks in particular.
Interest rates are ultra-low by historical standards by any measure but we can clearly see what will happen if enormous deficits, high unemployment and a weak dollar are not addressed soon by the FED, Congress and ultimately by the american people.
Mortgage Insider dishes it straight on housing and the jumbo mortgage market.
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Bond Market Doesn’t Like Tax Cuts: Mortgage Rates Spike

December 8th, 2010 The Editor Posted in fixed jumbo mortgage, jumbo loan, mortgage rates No Comments »

Bond Market Revolt

The US Treasury bond market reaction to the Fed’s QE policies and to this disgrace of a budget proposal was swift and severe. I have a picture of it for you right here.



That is what the bond market thinks of Ben Bernanke’s plan to spur inflation but hold down treasury yields.

The ovals show today’s bond-market reaction to the budget deficit that Bernanke will no doubt monetize as part of QE III and QE IV when this round of “quantitative easing” blows up in his face.


Conforming Mortgages Went From 4.00% to 4.50% in the last few weeks. This is not helping housing or the economy at all.
Jumbo Mortgage Rates have moved from 5.00% to 5.375% in the last two weeks in particular.
Interest rates are ultra-low by historical standards by any measure but we can clearly see what will happen if enormous deficits, high unemployment and a weak dollar are not addressed soon by the FED, Congress and ultimately by the american people.
Mortgage Insider dishes it straight on housing and the jumbo mortgage market.
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FHA Mortgage Rates Drop Below 5%

March 19th, 2009 admin Posted in FHA rates, home loans, mortgage rates No Comments »

Mortgage buyer, Freddie Mac, announced that FHA rates dropped to 4.98% from 5.03 % a week earlier.  The interest rate drop was just short of the record low 4.96 % touched the week of January 15th. Bloomberg reported that the average U.S. rate on a thirty-year fixed mortgage fell this week as the Federal Reserve announced it would double purchases of mortgage debt as part of its effort to lower rates and lure homebuyers to the market.

The Federal Reserve announced yesterday that it plans to buy up to $300 billion of Treasuries and increase purchases of mortgage-backed bonds. Falling real estate and stock prices, record home-loan defaults and job losses have cut demand for new and existing homes in the U.S.  The nation’s jobless rate rose to 8.1 % in February as employers reduced payrolls by 651,000, according to the Labor Department.

Home loan delinquencies jumped to a seasonally adjusted 7.88 % of all loans in the fourth quarter, the highest in records going back to 1972, the Mortgage Bankers Association said March 5th home loans in foreclosure rose to 3.30 %, also an all-time high.

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