Posts Tagged ‘mortgage rates’

Lenders Should Help You … Not … Walk Away From Your Mortgage

Friday, January 8th, 2010

The excerpts below are quoted from :

“Walk Away From Your Mortgage”
By Roger Lowenstein
Contributing writer for the New York Times Magazine
Published:  January 7, 2010

Time was, Americans would do anything to pay their mortgage — forgo a new car or a vacation, even put a younger family member to work.  But the housing collapse left 10.7 million families owing more than their homes are worth.  So some of them are making a calculated decision to hang onto their money and let their homes go.  Is this irresponsible?


Leap Day February 29, 2008 In Review

Sunday, March 2nd, 2008


Unlike all the hype you hear from advertising, and sadly people who should know better, mortgage rates are more closely related to trends in Treasury Bond yields,  and definitely not directly to Federal adjustments of the prime rate.    This is a spot picture of where we were on 2/29/08. 


The Yield on the 30-Year Bond – As stocks got crushed, there was a flight to quality into US Treasuries.   The yield on the 30-Year US Treasury Bond tested 4.699 on Wednesday, as inflation fears trumped another rate cut by the Federal Reserve on March 18.   Then as stocks got clocked on Thursday and Friday a renewed flight to quality pulled the 2-Year note yield down to 1.616, a new low for the move. The bond ended the month at 4.473.     Monthly resistance is 4.066.



30 Year Treasury Bond Yield FPE 02/29/08


30 Year Treasury Bond


30 Year Treasury Bond Rates FPE 2/29/08


Chart Courtesy of Reuters and 

Rate Lock Recommendation – 11/21/07 12:45 PM EST

Wednesday, November 21st, 2007

Wednesday’s bond market has opened strong following early stock weakness and concerns about the economy next year. The stock markets are showing sizable losses with the Dow currently down 130 points while the Nasdaq has fallen 35 points. The bond market is currently up 23/32, which will likely improve this morning’s mortgage rates by approximately .250 of a discount point.

This morning’s economic data has not had much of an impact on today’s trading or mortgage rates. Comments made by the Fed late yesterday are influencing this morning’s trading much more than the data is. The Fed lowered its economic outlook for next year, which has affected stocks negatively and helped shift funds into bonds. This has pushed the yield on the benchmark 10-year Treasury Note down to 4.01% and is flirting with the 4.00% threshold. It actually broke that level during overnight trading, which is the first time since September 2005. It will be interesting to see if it will close below 4.00%. Doing so leaves room for further improvements and lower mortgage rates. If not, rates will likely not see much more improvement in the immediate future.



Rate Lock Recommendation – 11/14/07 1:13 PM EST

Wednesday, November 14th, 2007


Wednesday’s bond market has opened in negative territory despite weaker than expected economic news. The stock markets are relatively calm with the Dow up 20 points and the Nasdaq down 1 point. The bond market is currently down 8/32, which will likely push this morning’s mortgage rates higher by approximately .125 of a discount point.

The Commerce Department gave us October’s Retail Sales figures early this morning, saying that sales rose 0.2% last month. This matched forecasts, therefore, has not had a significant impact on the bond market or mortgage rates today.


Rate Lock Recommendation – 11/04/2007 9:33:00 PM EST

Monday, November 5th, 2007

This week is very light in terms of economic releases for the markets to digest, especially compared to last week. There are two monthly and one quarterly reports on tap, but only the quarterly one can be considered to be highly important. This makes it quite likely that we will see a fairly quiet week in the mortgage markets, assuming that the stock markets do not repeat last week’s volatility.