Negative Interest Rates: What Are They And Should We Be Concerned?

For quite some time now, the financial world has been throwing around the buzz-term ‘negative interest rates’ that has some concerned and others confused, but what exactly are negative interest rates? A Negative Interest Rate Policy is enacted by a central bank (ie: the U.S. Federal Reserve) whereby the central bank charges depositors to keep… Read More »

Rising Treasury Yields Finally Quelled Ahead of Fed Decision

Today has finally seen the end of one-month highs on 10-year treasury yields. Anticipation for news from today’s FOMC meeting has put an end to the steady rise in yields seen throughout the month of April. Because mortgage rates typically track 10-year treasury yields, this is important news for the mortgage world, as evidenced by… Read More »

Exports and Ego, Why China Devalued Their Currency

Yesterday, China’s surprise devaluation of the Yuan sparked global market movement ultimately, resulting in mortgage rates quickly dropping below 4% on top tier conventional scenarios. Generally there is minimal link between China and movement of low mortgage rates in the U.S. however, yesterday’s news spooked global markets. The effects of which, have been felt broadly… Read More »

New Year New Lows

The year 2015 has started out on the right foot, with an actual improvement in the bond market bringing mortgage rates lower than what markets have seen in about the past 19 months. The cause of this recent phenomenon isn’t linked to any one particular occurrence but rather as shown below, the interconnectedness of many… Read More »

The Jumbo Market

In light of some of the recent trends in rates, I thought it an opportune time to take a look at some markets that will likely benefit from the current economic environment. One market in particular, the ‘jumbo’ market is likely to benefit greatly from recent mortgage loans. For those who are unfamiliar with the… Read More »

The End of QE3

As anticipated, last Wednesday the Fed announced an end to its asset purchase program known as QE3, and while rates rose the same day, it is important to note several factors behind the move and keep a few things in perspective. First, while rates did increase the same day the Fed announced an end to… Read More »

Refi or Bust?

 In 1858 the prospect of gold in the Pike’s Peak Country or what later became known as the Colorado Territory of the United States lead to one of the greatest gold rushes in United States history with the prevailing motto of the day ‘Pike’s Peak or Bust!’ as prospectors rushed to claim their share before… Read More »

What Does Your Mortgage Really Cost?

For many Americans, obtaining a mortgage is their only means to homeownership. As such, many individuals enter into their first mortgage transaction without realizing how much the interest associated with the transaction is really costing them. As the table below illustrates, the interest associated with the average mortgage can amount to thousands (or even hundreds… Read More »

All About the Fed

This week, like so many others, is once again all about the Fed. With not much on the economic calendar, any Fed activity will likely drive market movement this week. We can expect to hear from Chairwoman Yellen around 2:30 tomorrow afternoon following the adjournment of the FOMC meeting and the release of updated estimates… Read More »