Friday 06/24, world markets opened to shock and chaos in the wake of news that the United Kingdom had decided in a vote of 51.9% to 48.1% to leave the European Union, a move seen only once previously when in 1982 Greenland decided to leave the EU. The result thus far can only be described… Read More »
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 »
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 »
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 »
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 »
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 »
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 »
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 »
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 »
Although the data due out this week is not vitally important to rates, the economic calendar is fairly busy. We could potentially see action in terms of rates with the bulk of it happening today and tomorrow afternoon. Already this morning we have heard from the Federal Reserve Bank of Philadelphia President, Charles Plosser, who… Read More »