Posts Tagged ‘ Fed ’

National Mortgage Rates Report: April 14, 2008

I’m still floating mortgage rates, unless my clients are closing within 14 days. I’m cautiously floating because of the volatility in the market. Fundamentally, mortgage rates shouldn’t have a whole lot more room to come down; the Fed cuts are probably coming to an end.

Something much more drastic than the Fed open market activities will be needed to pull us out of the recession.

Yep. I said the R word and have been since last fall. I’m not scared of the recession; I welcome it.

Here’s the trick for mortgage rates. The weak dollar has world investors believing that the Fed’s easy money policy is inflationary…


The recession hits them. Make no mistake about it, the economic slowdown is a global phenomenon. Canada and the UK are following suit by cutting rates. I think the world wide recession will lower oil prices and provide some much needed relief to the American consumer. Continue reading this post


Posted by: Brian Brady on April 14th, 2008 under Financing, Mortgage and Home Loans

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National Mortgage Rates Report: March 3, 2008

Lock all interest rates at application.

The unrest in Asian markets is bleeding to the US and traders are more concerned about the inflation risk than the possibility of a recession.

Economists believe that The Fed’s easy money policy is really an investor bailout disguised as a recession aversion. They think it’s compromising the integrity of our economy. As commodities prices (oil, food) accelerate, so may consumer, non-essential prices.

I still favor mid-term ARMs over 30 year-fixed rate loans. We offer a 7-year fixed period ARM at 4.875% (5.18% APR) while a 30-year fixed rate loan is a full percentage point higher.

When you consider that the average hold time for a mortgage is five years, the 7-year fixed period ARM makes a whole bunch of sense.

It should be a volatile week ahead with lots of economic data being released. Keep checking for updates. Want your rate quote and good-faith-estimate reviewed FREE? Fax it to (858) 605-4230 and call (858) 777-9751 to let me know it’s there. Continue reading this post


Posted by: Brian Brady on March 3rd, 2008 under Financing, Mortgage and Home Loans

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Mortgage Rate Truth

Is the media correct in their assessment on the Fed rate moves and how that relates to mortgage rates and the lowest mortgage rates ever? Are we as real estate professionals thinking this to be the case also?

Just so you know, fixed mortgage rates directly correlate to the 10 year treasury bond, which is an investors haven of choice when other markets such as the stock market are tanking.

With a flush of investors money into mortgage backed bonds, rates drop as supply and demand dictates.

However, when the Fed lowers the short term discount rate, this is designed for consumer spending on short term credit and therefore investors may see the stock market as the better investment as profits pour into retailers etc. They bail out of bonds, and interest rates are on the rise to enhance back the now elusive bond investor.

This all happens with lightening speed, and in many cases it happens prior to any Fed move as investors hedge on the expected or react to the unexpected.

Here is what occurred over the last wild 10-day period: Continue reading this post


Posted by: Jeffrey Bastress on February 8th, 2008 under Market Trends


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