Mortgage Rates on the Rise
Mortgage rates are rising, according to the Times, in the wake of the troubles surrounding Fannie Mae and Freddie Mac. While rates continue to be low by historical standards, they’re high compared to the levels they’ve been at in the past several years: The average yesterday was 6.71 percent for 30-year, fixed-rate mortgages, up from…
Mortgage rates are rising, according to the Times, in the wake of the troubles surrounding Fannie Mae and Freddie Mac. While rates continue to be low by historical standards, they’re high compared to the levels they’ve been at in the past several years: The average yesterday was 6.71 percent for 30-year, fixed-rate mortgages, up from 6.44 percent on Friday, and 7.8 percent for jumbo loans. Rising rates primarily threaten to affect borrowers who have had loans with an interest-only teaser period, which could deepen the national housing morass. When we get to rate levels like this, the market just shuts down, said a mortgage broker based in Colorado. Some analysts argue that the rising rates are a temporary blip. Do any readers have first-hand experiences to report from the last few days?
Woes Afflicting Mortgage Giants Raise Loan Rates [NY Times]
Photo by woodleywonderworks
This discussion is over. He’s reverted back to the old bullsh!t.
I should have known better. There’s a big difference between ignorant and stupid and The What is the latter.
Good bye.
“It’s the benchmark rate at the Fed discount (lending) window for banks that’s set by the Fed. ST rates (Treasuries) follow that closely in the open market.”
No!http://www.financialsense.com/Market/wood/2007/0907.html
Will the Fed Continue to Cut Rates?
The charts tell the story..
The What
Someday this war is gonna end..
“earn what the benchmark rate is What or STFU. It’s set by the Fed. As usual, you are out of your league if you can’t read it on a headline.”
Take a look at those rates Dave 4, 13, 26 The Fed follows the Bond market..
“What really happened with Fannie & freddie was that China, Japan and other holders of these securities called in their markers.”
This event has not happen yet. The Chinese are waiting until after the Olympic to dump, same with the Japanese.
The spike are due to the Mortgage Bailout that Bush will sign. This protect Fannie Mae and Freddie Mac assets. I’m been harping on this issue for months.
“Hey What, FNM up 20% today!”
Plenty of people are short coving! Their balls are getting squeezed!
“Dave, I have to agree halfway with the what, and half with you. Long-term rates are set by the bond market, short-term by the Fed.”
Nope! Overnight lending is set by the Fed and the Bond Market takes care of everything else. When the short end of the curve rises you will see these Asshats talk about raising rates because of inflation! The Fed will have to “Follow the market”
This is the greatest rip off in history! Wall Street sold everyone a dream and now you will have to pay for that dream.. RIP MREB!
The What
Someday this war is gonna end…
It’s the benchmark rate at the Fed discount (lending) window for banks that’s set by the Fed. ST rates (Treasuries) follow that closely in the open market. The current discussion revolves around whether to allow other than commercial banks to borrow there…like Lehman et al.
LT rates have actually fallen. They were as high as 5.40 for 30 year Treasuries about a year and a half ago and they are now 4.65% or thereabouts…just eyeballing the charts
Hey What, FNM up 20% today!
Dave, I have to agree halfway with the what, and half with you. Long-term rates are set by the bond market, short-term by the Fed.
30year rates may be rising cuz of inflationary expectations.
What really happened with Fannie & freddie was that China, Japan and other holders of these securities called in their markers. They also operate on mark-to-market valuations and were watching their balnce sheets and currrent accounts decline because of this mess and they basically all called in and said “do something about this” and the Fed did because these foreign governments own the lion’s share of this paper.
learn what the benchmark rate is What or STFU. It’s set by the Fed. As usual, you are out of your league if you can’t read it on a headline.
Mr. Raines ex-ceo of Fannie Mae was paid 20 million in 2003. Who knows how much Countrywide and all other invetsment banks earned in fees for packaging and selling these mortgage bonds.
Now the goverment is insuring $300 billion of refinanced mortgages with my taxpayer money. I feel pretty angry right now.
Privatize the gains and socialize the losses. Sounds like a free market to me. NOT!
I’m mad as hell and I’m not going to take this anymore.
“The Fed follows the 44, 13, 26 week treasures.”
I mean The Fed follows the 4, 13, 26 week treasures. Typo
The What
Someday this war is gonna end…