economy

10 Cities That May Be Signaling That The Worst Of Housing May Already Be Over

July 16, 2008

Last week, Forbes Magazine published a Top 10 list that should grab the attention of housing market bottom-feeders. The Top 10 list of Increasingly Affordable U.S. Housing Markets shows that falling home prices and steady mortgage rates are providing a support floor in some of the country’s most beat-up regions. The report’s methodology is simple: […]

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Fannie And Freddie Are Yesterday’s News, Says The Market

July 15, 2008

Mortgage markets have turned their attention back to the U.S. economy this morning, causing yesterday’s rate improvements to unwind a bit. Rates had fallen Monday after the Federal Reserve and U.S. Treasury’s joint announcement in support of Fannie Mae and Freddie Mac.  Today, it’s the data that is taking center stage. Most notably, the U.S. […]

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Looking Back And Looking Ahead : July 14, 2008

July 14, 2008

Mortgage rates fell slightly in a week that included a bank failure, more oil price spikes, and questions about the health of the nations’ mortgage market. Rates would have fallen more if not for a late-Friday sell-off that added 0.125 percent to most products. As financial markets fell under stress, most people missed the strong […]

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How Is The Economy Doing? It Depends Who You Ask.

July 11, 2008

“Economic uncertainty” is turning into a 2008 buzzword and there’s good reasons why. On the one hand, there are precursors to inflation in the economy: Rising oil costs Rising food prices Higher Cost of Living On the other hand, there are precursors to recession in the economy, too: Mounting job losses Less access to credit […]

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The “Sheep Effect” On Your Housing Payment

July 9, 2008

A noon-hour, mortgage-bond rally rendered homes more affordable for Americans Tuesday. It was the second straight day on which this happened. On both days, the action was swift. The speed at which Monday’s and Tuesday’s respective rallies tore through mortgage markets illustrates how deep the uncertainty that surrounds the U.S. economy really is. One reason […]

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Looking Back And Looking Ahead : July 7, 2008

July 7, 2008

Last week was fairly uneventful in the mortgage markets, with rates slightly edging lower across the board and without much data to influence trading. Even Thursday morning’s hotly-anticipated jobs report was met with lukewarm interest; many traders had already left for the weekend. Mortgage rates just drifted — a little up and little down, but mostly unchanged. […]

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How Job Losses In The Economy Are Helping Home Affordability

July 3, 2008

On the first Friday of each month, the Bureau of Labor Statistics releases its Non-Farm Payrolls report. More commonly, it’s called the “jobs report”. The jobs report is a sector-by-sector look into the U.S. economy and whether businesses are hiring — or firing — workers.  This is one of the reasons why its release is so […]

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Why Mortgage Rates Could Fall Because Of Midwestern Farmers

July 1, 2008

As flood waters ran through Iowa and other Midwestern states, the nation’s corn supply was thought to be in danger. Prices spiked in the wake of the floods, adding to the already-peaking grocery bills that many Americans are now bearing. But yesterday, in a surprise report, the Agriculture Department said that many farmers had over-planted corn […]

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Looking Back And Looking Ahead : June 30, 2008

June 30, 2008

Mortgage rates improved last week, marking the first time since mid-May that has happened. The rate drop is the result of how mortgage markets interpreted the Federal Reserve’s Wednesday press release. In it, the Fed said: Inflation pressures should lessen soon Growth should remain steady this year The credit market is currently fragile Separately, none […]

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How The Fed’s Words Should Trump The Fed’s Actions Today

June 25, 2008

The Federal Open Market Committee adjourns from its 2-day meeting at 2:15 P.M. ET today.  It’s widely expected that the group will leave the Fed Funds Rate unchanged at 2.000 percent. However, it’s not what the Fed does today that has markets so interested.  It’s what the Fed will say. One of the Federal Reserve’s […]

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Looking Back And Looking Ahead : June 23, 2008

June 23, 2008

Mortgage rates edged higher for the fifth straight week and the benchmark 30-year fixed-rate mortgage is now at a 10-month high. One reason why rates are spiking is because the temporary jolt from higher energy and food costs is starting to look like a longer-term trend. For example, high energy prices get a lot of press, but […]

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The Midwest Flooding And Its Impact On Your Home Mortgage

June 20, 2008

Flooding in the Midwest has displaced thousands of families and caused billions of dollars in damages. It may also cause mortgage rates to rise. As the extent of the damage becomes more clear, prices for grain and livestock are soaring.  For example, a host of dietary staples are suddenly more expensive at the supermarket, including: Meat […]

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If That Home Is A “Good Buy”, Make Your Offer Quickly

June 17, 2008

Each month, University of Michigan researcher survey the U.S. population about their thoughts on the economy — is it improving, it is worsening, is it staying the same. May’s consumer confidence survey registered it’s lowest reading since 1980. Given the recent headlines, that shouldn’t be surprising: Unemployment is spiking Gas prices are at an all-time high […]

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Looking Back And Looking Ahead : June 16, 2008

June 16, 2008

Mortgage rates moved higher last week on lingering concerns about inflation, the fourth straight week in which rates rose. Mortgage rates are now as high as they’ve been since October 2007. Because inflation devalues mortgage bonds, market players are quick to unload them when signs of inflation are present. Last week, there were several such signs: […]

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Guess Which 4 States Accounted For More Than 50 Percent Of May 2008 Foreclosures

June 13, 2008

RealtyTrac released its most recent foreclosure statistics and if you only read the headlines, you think the entire country was on the verge of losing its homes. The underlying data tells a different story, however. More than half of the country’s foreclosure activity in May 2008 was tied to just 4 states in the union: California (28 […]

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Is The Federal Reserve Telegraphing Its Next Rate Hike?

June 11, 2008

The Federal Reserve is stumping hard on inflation this week, creating speculation that Fed Funds Rate hikes may be in store for later this month. This is a counter-intuitive development because increases to the Fed Funds Rate are typically associated with periods of rapid economic expansion. Lately, we’ve seen anything but. Witness: High levels of unemployment […]

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Looking Back And Looking Ahead : June 9, 2008

June 9, 2008

There was no rest for the mortgage-rate weary last week. As mortgage bonds sold off early in the week, sharp rate hikes followed. A steady stream of better-than-expected economic reports had re-ignited inflation fears, drawing money from the bond market. On Friday, however, the money flow reversed on a triple threat to the U.S. economy: The […]

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Why It’s Good News For Home Buyers When Unemployment Rates Surge

June 6, 2008

On the first Friday of every month, the Bureau of Labor Statistics releases its Non-Farm Payrolls report. More commonly called the “jobs report”, today’s 2-page analysis of May 2008 shows that the economy shed jobs and that unemployment surged. This is terrific news for home affordability. That may sound counter-intuitive, so let’s dig deeper into the […]

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Looking Back And Looking Ahead : June 2, 2008

June 2, 2008

Mortgage rates rocketed higher last week, stunning active home buyers and mortgage rate shoppers. Some conforming mortgage rates rose by as much as three-quarters of a percent before Friday’s closing. Even in a year in which mortgage rates have been extremely volatile, last week’s spike was a large one. The main driver of last week’s […]

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The Impact Of Falling Oil Prices On Mortgage Rates

May 30, 2008

Falling oil prices is one reason why mortgage rates are dropping for the first time in 6 days. Oil is off $9 per barrel from last week, a shift that correlates to $0.23 per gallon of unleaded gas, roughly. This drop is good news for both home buyers and “rate shoppers” — high gas prices […]

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