Archive for October, 2008
Why Mortgage Rates Haven’t Fallen As Expected
When the government nationalized mortgage lending in September, housing analysts predicted lower mortgage rates.
For a brief two-week stint, they were right — post-takeover, the 30-year, fixed rate mortgage fell below 6.000 percent nationally for the first time in 7 months.
Since then, however, mortgage markets have reversed. Rates are now at pre-takeover levels.
Now, this isn’t to [...]
Making English Out Of Fed-Speak (October 2008 Edition)
The Federal Open Market Committee voted to cut the Fed Funds Rate by one-half percent today. The benchmark rate now stands at 1.000 percent.
In its press release, the Fed wasted no time addressing the key issue at-hand, stating that economic activity has “slowed markedly”, pointing to three main causes:
Consumer spending is falling
Business equipment spending is falling
Slowing foreign economies are [...]
No Matter What Happens To The Fed Funds Rate Today, Markets Are Going To Turn Up The Volatility A Notch
The Federal Open Market Committee adjourns from its scheduled 2-day meeting today at 2:15 P.M. ET and the markets are eagerly awaiting the central bank’s press release.
In it, Fed Chairman Ben Bernanke is expected to address the U.S. economy, the future of credit, and the new Fed Funds Rate.
It’s this last point to which mortgage rate shoppers [...]
Looking Back And Looking Ahead : October 27, 2008
Mortgage markets followed the recurring trading pattern of 2008 last week — volatility, volatility, and more volatility.
After opening with a strong performance that drove rates down, late-week fears of a global recession reversed that path. Mortgage rates ended the week unchanged.
This was an unexpected outcome for the week considering that:
The dollar gained 5%, making [...]
