Blog Category: interest rates

I barely know what “above par pricing” means, and I have been in the mortgage business for 25 years! I’ll see if I can explain it, and why you need to know about it. Read More

Interest rates have come down, yes. I have already blogged here once about the current hysterical herd that seems to think that rates are dropping 1% each week. Apparently…I again need to discuss why rates are not plummeting non-stop. And likely…..will have to do so again. Read More

I am sure many people want to know where current mortgage rates are at all times, but especially after the recent stock market debacle where the DOW was down almost 1,000 points at one point in the day. Of course, the story line we are hearing is that the mistaken input of a fat fingered trader at Citi is solely responsible for the error. That story is meant for an entire other blog post, but if anyone believes there are not checks and balances in place to protect from those sorts of simple mistakes, then I have a bridge for sale. Read More

Does The Government Control Mortgage Rates? Thinking the Federal Reserve will cut interest rates, or raise interest rates, may not be advisable. Here are some pertinent comments from an economist: Read More

Interest rates are down, do you need to refinance? Are you looking to buy a new home?

I have noticed in the past that when rates go down, they do not seem to stay down for very long. It seems they stay down for days, maybe weeks. Right now you can get a 30 year fixed-rate mortgage for somewhere around 4.75%, and you can get a 15 year fixed-rate mortgage for somewhere around 4.25%. The specifics will depend on the loan size, your credit score, the property type, property location, etc. Read More

Everybody likes to offer an opinion on where the stock market is headed next, or where interest rates are headed, among many other things. So I’ll jump into the fray and offer my opinion as well. I think Read More

Mortgage rates have been on the rise. I am not sure if its part of a long term trend, or if its a short term blip. Read More

Interest rates remain low, and have been low, for years it seems like. Although a consumer may complain about getting 5.625% instead of 4.875%, rates have been in a very tight range for quite a long time. We have not had a rate with a ‘6’ in front of it for years. And I can remember when 6% was thought to be a very low rate!

Of course, the whole discussion of rates has to incorporate the price of what one is financing. Read More

Rates have dropped. Rates are great. Rates are very low. All true. But I have seen this show so many times before, I know how the script goes each time. Read More

The Federal Reserve Controls Mortgage Rates? NO IT DOES NOT! There are many conspiracy theorists out there that think the Federal Reserve controls interest rates, and a lot of other things. As much as I dislike the Federal Reserve, for being arrogant enough to think Read More

It’s that time again, the time when people seem to think a government edict can control a massive market. I have gotten dozens of calls and emails that go something like this:

“I hear Ben Bernanke is pushing rates down again.”

“I hear the government is pushing rates down.”

“I hear rates just dropped yesterday.”

The government does not control interest rates, unemployment, economic growth, etc. Read More

Have you ever not thought ahead and then found yourself marooned? I found myself thinking of this as a friend of mine was complaining about a roof leak he had that was causing massive damage to his bedroom.

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So the debt ceiling is all fixed? Too bad. What else will generate so much hyperbole from our politicians? There were stories of terrorism, global disaster, and economic meltdown. My favorite was this one from Nancy Pelosi who insisted the debt limit be raised massively, “We’re trying to save life on this planet as we know it today.” Rep. Michelle Bachmann worried that raising the debt limit at all would be “like saying we embrace being Greece.” It was fun to watch. Rep. Maxine Waters said the final compromise bill “may be the single-worst piece of policy to ever come out of this institution.” Maxine needs to brush up on her history, this comes nowhere close.
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Just when everyone thought rates were on a straight trend line pointing down! A few days ago, on Friday, December 4, 2009, there was a fairly bullish jobs report. Bond yields jumped up, hence, interest rates rose a bit. For a few days, I was locking-in clients at 4.75% with zero points on a 30 year fixed-rate conforming loan. A conforming loan is a loan that is equal to $417,000 or less. Read More