Bond Market Report

April 21st, 2019
bond market report

 

The 10 Year Treasury Bond is at 2.56% as of last Friday. This is about the same as the last time I posted 10 Year Treasury Bond data in early January.

On 01-03-2019 the 10 Year Treasury Bond was 2.55%.

The direction of the 10 Year Treasury Bond is a good gauge on where mortgage rates are going. While it is not an exact measure, the 10 Year Treasury Bond is one of the best things to follow to determine the general direction of mortgage rates. So the above means interest rates are about the same now as they were early in the year.

And below are some interesting historical numbers*:

In 2018 the average yield of the 10 Year Treasury Bond was 2.91%.

In 2017 the average yield of the 10 Year Treasury Bond was 2.33%.

In 2007 the average yield of the 10 Year Treasury Bond was 4.63%.

In 1997 the average yield of the 10 Year Treasury Bond was 6.35%.

In 1987 the average yield of the 10 Year Treasury Bond was 7.18%.

In 1977 the average yield of the 10 Year Treasury Bond was 7.42%.

Where are the 10 Year Treasury Bond, and more importantly mortgage rates, headed next? Check back here to see!

 

*The source for these numbers comes from: https://www.macrotrends.net/2016/10-year-treasury-bond-rate-yield-chart

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Prepayment Versus Recast

October 15th, 2018
Mortgage prepayment versus recast

When you divvy up your monthly budget pie, housing is very likely the biggest slice, especially after you add in utilities, maintenance and of course, your mortgage.  

So wouldn’t it be great if you could lower your mortgage payments without refinancing your loan? Or better yet, pay off your mortgage ahead of schedule? Read the rest of this entry »

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No cost refinancing a.k.a. no cost refi

January 2nd, 2018

No cost refinancing, does it exist?

I frequently have people ask me for “one of those no-cost refi’s”. Some people think that mortgage lenders are so hard up for business that they are willing to lose money and simply pay the closing costs for the mortgage borrower. I don’t know of any businesses where losing money is part of the process of making money. A no-cost refi actually comes with a cost…a higher interest rate.

The reality is that a no-cost refi is one where the closing costs are built into a higher interest rate. Read the rest of this entry »

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Interest Rates Are Still Low. Or Did They Go Up? Are They Down?

April 24th, 2017

Interest Rates Are Still Low. Or Did They Go Up? Are They Down?

Interest rates rose after the presidential election. The news from the bond market according to MBS Online was “Trump has advocated for greater spending on defense and infrastructure, and at the same time he proposes to cut taxes. These policies raise the prospects for increased deficits and inflation, neither of which are good for mortgage rates.”1

 

Recently rates have come back down a bit. Rates are Read the rest of this entry »

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When Refinancing Consider Your Life Of Loan Costs!

December 30th, 2016

refinance-math-brian-martucci-getloans-blog-1Refinancing doesn’t save you money unless you calculate in the interest that you’ve already paid. Especially when you think you’ll own the house for the long haul or forever. If you pay $2,500 a month in principal and interest, you are going to pay $900,000 over the life of a 30-year mortgage. If you are 4 years into the loan and are going to refinance to a principal and interest payment of $2,800 you are going to save $200 a month, correct? Wrong! Read the rest of this entry »

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Underwater Mortgage? Refinance Soon, HARP Expires End of 2016!

September 9th, 2016

brian-martucci-underwater-mortgage-harp-refinance-program-getloans

The Home Affordable Refinance Program (HARP) is a mortgage assistance program, set up by the Federal Housing Finance Agency in March 2009 to help underwater and near-underwater homeowners refinance their mortgages.

After the housing market crash in 2009 many homeowners were faced with a situation where their house was considered “underwater”. In this scenario, the house value was less than the mortgage loan cost, in other words, having a negative equity value in the home. Refinancing was not an option, nor was selling the home unless they paid the lender for the difference. Unfortunately, this lead many homeowners into foreclosure. Read the rest of this entry »

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Can I Refinance To A 15-Year Loan From A 30-Year Loan and Keep My Payment The Same?

August 30th, 2016

when-refinancing-makes-dollars-sense-brian-martucci-mortgage-lender-getloans

In a word, no. This is not possible. I wrote a blog back in 2011 in another feverish refinance market showing the numbers on how you can’t shorten the term of your loan from 30 to 15 years without increasing your monthly mortgage payment. Those numbers bear repeating in the current interest rate climate and are below. Check out this hypothetical example: Read the rest of this entry »

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Is Quicken Loans “Rocket Mortgage” Going To Explode In Mid Air?

December 16th, 2015

stencil-instagram-post-13There was an article recently on TechCrunch.com that was titled “This Could Be The Mortgage Industry’s iPhone Moment” that proclaimed “Quicken Loans sees Rocket Mortgage as the turning point in home financing” and “It’s home financing’s iPhone”, and “The process takes less than 10 minutes.” Hmmm, we’ll see about that. Read the rest of this entry »

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The Refinance Boom is not Over? Refinance Your Fixed Rate to an ARM!

February 4th, 2014

Actually, the refinance boom is indeed over; however, there are a fair amount of people that still need to refinance. For example, I know of many people who have decided to move sooner than they imagined. I hear of consumers who thought that they would live in their homes for the long haul, but then due to circumstances that were a surprise to them, they have now decided to leave in the next few years. Let me give Read the rest of this entry »

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