mortgage

Looking Back And Looking Ahead : May 5, 2008

May 5, 2008

Mortgage rates ended higher last week on stronger-than-expected jobs data, strong consumer spending, and an appetite for riskier investments. But, investors were most excited about the Federal Reserve’s hint that its rate-cutting cycle may be over. The week was quiet until Wednesday when the Federal Reserve voted to lower the Fed Funds Rate by a […]

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Why Mortgage Rates Aren’t Falling Even Though The Economy Is Shedding Jobs

May 2, 2008

According to the Bureau of Labor Statistics, the U.S. economy shed 20,000 jobs in April 2008.  The labor force now counts at 146 million people as employed. Normally, a loss of jobs would foretell economic weakness and would be a good thing for mortgage rate shoppers.  Today, though, traders had been expecting a larger loss of […]

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Why It Doesn’t Matter What The Federal Reserve Does Today

April 30, 2008

The Federal Open Market Committee adjourns from its two-day meeting at 2:15 P.M. ET today. Markets expect the Fed to lower the Fed Funds Rate by 0.250 percent in its press release but it’s not what the Fed does that matters to economy right now. It’s what the Fed says. If the Fed states that […]

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Making English Out Of Fed-Speak (April 2008 Edition)

April 30, 2008

The Fed lowered the Fed Funds Rate by a quarter-percent to 2.000% this afternoon. Because it is tied to the Fed Funds Rate, Prime Rate also fell by a quarter-percent.  Prime Rate is now 5.000%. Holders of home equity lines of credit and credit card debt benefited from the change and will see lower interest costs in next […]

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Looking Back And Looking Ahead : April 28, 2008

April 28, 2008

Mortgage markets lost ground last week on inflation concerns and a general feeling that “the worst may be over” on Wall Street. As investors moved money into the stock market, mortgage rates ticked higher for the second straight week. The biggest story from last week was the rising cost of gasoline. Rising energy costs combined with rising […]

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Before Co-Signing For A Mortgage, Consider The Deeper Implications

April 22, 2008

As mortgage lenders limit how much money they will lend and to whom, co-signing home loans is growing in popularity. “Co-signing” a home loan is when a third-party — usually a parent or relative — promises to make repayments to the bank in the event that the borrower falls behind on his obligations. Money experts usually […]

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Looking Back And Looking Ahead : April 21, 2008

April 21, 2008

The S&P 500 added 4.3 percent last week — more than during all of 2007 — in what was a good week for the economy and a bad week for mortgage rate shoppers. After Friday’s close, mortgage rates were higher by as much as 0.375% versus the Friday prior.  This reversed a trend of falling […]

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Basic Credit Scoring Tips For A Better Mortgage Rate

April 17, 2008

Credit scoring is becoming more important to mortgage pricing so now would be a terrific time to brush up on your credit education. If you understand how the system works, after all, you can make it work to your advantage. One terrific place to start your research is at myFICO.com. Published by credit scoring powerhouse […]

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Looking Back And Looking Ahead : April 14, 2008

April 14, 2008

Through 5 days of see-saw trading, mortgage rates ended last week relatively flat; the downward tick into Friday’s close was a boon for home buyers this past weekend. It may be short-lived, however. Oil continues to sit near all-time highs and a slew of inflation-related data is crossing the wires this week. When inflation pressures are […]

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Mortgage Lenders Get “Once Bitten, Twice Shy” And Impose New Restrictions

April 11, 2008

Getting approved for a conforming home loan is now tougher than before. Again. As home loan defaults mount, government-sponsored financier Fannie Mae has imposed new guidelines on what it will lend and to whom, highlighting the need for a strong credit profile and a downpayment. In other words, Fannie Mae is outright declining mortgage applicants […]

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Are You Financially Smarter Than A 12th Grader?

April 10, 2008

Every two years, the Jump$tart Coalition issues a “personal finance” exam to high school seniors. The test highlights the importance of personal financial literacy among America’s youth and comes at an especially important juncture. Many experts — including Fed Chairman Ben Bernanke — believe that basic financial knowledge is essential for (and lacking in) teenagers.  […]

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What 98 Percent Of Traders Think About The Fed’s Next Move

April 9, 2008

In three weeks, the Federal Open Market Committee will meet again and markets anticipate another cut to the Fed Funds Rate. Based on data compiled by the Federal Reserve Bank of Cleveland at the close of business yesterday, traders put the probabilities of the Fed’s next move at: 62 percent chance that the Fed Funds Rate falls to […]

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A Simple Explanation Of “Credit Crunch”

April 8, 2008

News sources like to use the term “credit crunch” in describing the U.S. economy, but they rarely define what a credit crunch is and what it means for Americans. A credit crunch is when the amount of available loans suddenly decreases over a very short period of time. Usually, it follows a period of lending which, […]

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Looking Back And Looking Ahead : April 7, 2008

April 7, 2008

Mortgage rates edged lower last week, buoyed by a weak employment report for March. After shedding 80,000 jobs last month, the number of working Americans is lower by 232,000 so far this year. Many pundits are claiming these figures are proof of a U.S. economic recession but it’s important to keep the data in perspective. […]

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How Mortgage Rates Benefit From 3 Months Of Worsening Employment Data

April 4, 2008

For the third month in a row, the economy shed jobs, suggesting that the U.S. is in a recession. March’s monthly loss of 80,000 jobs is the largest since March 2003 and follows January and February’s losses of 76,000 each. The weak data is edging mortgage rates lower as we head into the weekend. The […]

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Simple Real Estate Definitions: Discount Points

April 2, 2008

More commonly called “points”, discount points are up-front fees charged by mortgage lenders in exchange for lower mortgage rates. The cost of one point is one percent on the loan size and discount points appear on Line 802 of the HUD-1 Settlement Statement. As a general guideline, each point paid lowers a mortgage lender’s offered interest […]

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FHA Home Loans Emerge As A Cheap Alternative For Low-Credit Score Homeowners

April 1, 2008

FHA stands for Federal Housing Administration, a by-product of the National Housing Act of 1934 and now a sub-group within the U.S. Department of Housing and Urban Development (HUD). The FHA is not a lender nor does it build homes. The FHA exists to insure lenders against loss in the event that a homeowner defaults […]

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Looking Back And Looking Ahead : March 31, 2008

March 31, 2008

Mortgage rates were up last week on weak housing data and a growing nervousness about mortgage bond quality. Rates would have been up more if not for a tame inflation reading Friday. The Personal Consumption Expenditures report fell Friday to 2.0% year-over-year, putting it back within the Federal Reserve’s comfort zone of 1-2 percent. PCE […]

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In 2008, Home Loans Are One Day Cheap And The Next Day Expensive

March 28, 2008

When mortgage rates change rapidly, it’s a fiscal challenge to shop for a home and/or home loan. Lately, mortgage rates have been especially volatile, mirroring the wild moves of the stock market. Here’s how up-and-down stock markets have been in 2008: Through last week, the S&P 500 Index changed more than 1 percent per day on […]

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The Small Statistic Within Consumer Confidence That Didn’t Show Up On The News

March 26, 2008

Consumer Confidence fell to its lowest point in three years and anybody who watches the evening news can understand why. Each day, news programs barrage Americans with tales of economic woe and American Opinion is largely shaped by the media. After enough time, the reporting becomes a self-fulfilling prophecy. But, in the Consumer Confidence report, there […]

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