Blog Category: mortgage rates

interest rates

Bond Market Report – April 2019

 

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 10 Year Treasury Bond is not a direct correlation to mortgage rates. It is simply a good to know historical information on treasury bond rates.

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 is the 10 Year Treasury Bond headed next? 

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

interest rates

Bond Market Report – January 2019

I am going to post numbers on the 10 Year Treasury Bond on a regular basis. The 10 Year Treasury Bond is not a direct correlation to mortgage rates, but it is a good number to know.

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

Below are some interesting 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%. Read More

interest rates are up

Did The Coronavirus Make Mortgage Rates Go Down? Did the Federal Reserve Just Cut Mortgage Rates To 0%?

Mortgage rates did indeed go down after the Coronavirus spread and financial markets started to panic. But the Coronavirus and mortgage rates aren’t directly connected.

People considering a refinance continue to contact me for low rates, but now that rates have spiked it may no longer makes sense.

The recent mortgage rate reductions we saw may be gone for a period of time, but the rate changes are not as drastic as the media made it sound. Read More

interest rates going up

Home Price Reduction and Rates

How do home price reduction and rates affect one another? I have clients who have reported seeing price reductions in the asking prices of homes for sale. This is the first time I have heard of this in years and years. So, are real estate values about to correct? It probably depends on where you live. And of course, as with many of life’s answers, the answer is a matter of degree. Some markets may be in for a large correction, some a small correction, and some markets may still experience price gains.

Are housing values dropping?

Should they adjust the price of their home due to interest rates rising?

I have heard of some home shoppers say they feel home sellers owe it to homebuyers to drop prices just because of the interest rates increase. Read More

calculator with house on it

How A Mortgage Calculator Can Keep You Out of Trouble

 

If you type “Mortgage Calculators” into Google you will get over 2 million results and Google’s simple mortgage calculator at the top. The Google mortgage calculator will give you a rough idea of mortgage monthly payments based on a simple calculation of the interest rate and mortgage term. It doesn’t answer any details, like: how many payments do I have to pay in order to pay off my mortgage? In 15 years how much mortgage will I have left to pay if I increase my monthly mortgage payment? What happens if you want to increase or decrease the interest rate, or change the amount of years of your home loan? With all the mortgage loan calculators out there isn’t it best when you can see the big picture of your home loan payment and how it can work for you. Read More

interest rates

Latest Bond Market Report – January 2020

The 10 Year Treasury Bond was at 1.822% on January 10th 2020.

It was 1.847% as of October 28th 2019.

So you can see that rates have been fairly flat for the last 2+ months.

The 10 Year Treasury Bond is not a direct correlation to mortgage rates. It is simply good to know historical information on Treasury bond rates.

Read More

interest rates

Latest Bond Market Report – June 2019

The 10 Year Treasury Bond was at 2.08% as of last Friday*. This is the lowest it has been in a long time.

QUESTION: But what does this mean for mortgage rates?

ANSWER: In general, mortgage rates are flat recently, but down over the last few months.

QUESTION: Do mortgage rates rise and fall in lockstep with the 10 Year Treasury Bond?

ANSWER: No.

QUESTION: What variables affect mortgage rate quotes.

ANSWER: Loan size, loan type, property type, credit score, down payment, debt ratios, and more.

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

*The source for the 10 Year Treasury Bond quote comes from here: https://www.marketwatch.com/investing/bond/tmubmusd10y?countrycode=bx

interest rates

Latest Bond Market Report – October 2019

The 10 Year Treasury Bond was around 1.8% as of October 28th 2019.

The 10 Year Treasury Bond is not a direct correlation to mortgage rates. It is simply good to know historical information on treasury bond rates.

On August 2nd 2019 the 10 Year Treasury Bond was 1.846%.

On September 3rd 2019 the 10 Year Treasury Bond was 1.461%.

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 is the 10 Year Treasury Bond headed next? Stay tuned!

*The source for these numbers comes from:

https://www.macrotrends.net/2016/10-year-treasury-bond-rate-yield-chart

and

https://www.marketwatch.com/investing/bond/tmubmusd10y?countrycode=bx

Savings Budget Investment

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

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 More

fifty percent off

The Best Mortgage Rate

Often a client will start a mortgage loan conversation with, “I need to get the best rate.” And that often confuses me. What does the “best rate” mean? Does that mean you won’t work with a lender who doesn’t have the very lowest interest rate on the day you are ready to lock-in an interest rate? Does it mean you won’t give any consideration to experience, execution, responsiveness and delivery?

Would most people work with a mortgage lender willing to lose money? Read More

trading monitor

The Latest On The Bond Market

Below is a copy of some data I received from a bond market data service I use. It reports on bond market news several times daily. It helps me get a gauge on which way interest rates may go for the day and in general. I wanted to paste a recent email they sent me, and in parentheses and in CAPS give you my interpretation. Below is the data with my comments. Read More

news media

The Media Can Be Downright Silly

The media causes hysteria. It is what they are paid to do. As a newsperson you have to make something sound alarming even if it is not, to attract eyeballs to sell ad space. This is positively ridiculous. But I guess somehow the bills have to get paid. And in the news world, it is with ads and marketing. But it would be nice if consumers remembered this and took a harder look at some news reports and applied a little logic.

Read More

down arrow

They Go Down Forever!

Rates appear to be going down forever. There is no end to how low they can go, is there? Of course there is. And I find consumers have gotten used to not only low rates, but the fact that they will keep dropping. So they procrastinate and put off refinancing because rates will be lower tomorrow. But they may not. Rates can only go so low. We are at the lowest point for rates in our country. But the weak economy not only produces low rates, it produces doubt and fear.

Read More

historical rate chart

Where are interest rates going?

It seems the general consensus is that interest rates are going to drop “because of some Federal program” or, “because the Feds are going to make them go down to boost the economy.” It seems we have more believers in and fans of central planning than I ever imagined. Let’s make one thing clear, interest rates in the long run, are controlled by the marketplace. The Feds cannot decree 3% rates for the next 5 years while we work through this economic mess. Even the Feds ultimately cannot control the marketplace. However, the Feds can impact interest rates in the short run with monetary policy decisions, and the purchase of mortgage backed securities. Ultimately the marketplace sets interest rates after taking into account inflation and deflation, government monetary policy, supply of and demand for funds, and future economic expectations.

It has also recently been discussed that the cost of funds is much higher for lenders, and the availability of credit to then turn around and extend to the public is diminishing. Hence, it is said that it is hard for banks to drop rates, regardless of what the Feds do, in light of less available and more costly sources of funds. Read More