Mortgage Rates Continue Roller Coaster Ride
Mortgage rates continue the ride up and down. On a yearly note, mortgage rates have been moving between a 1/4% to 1/2% range on national trends. This may not seem like much, but the differences can be quite wider on high loan-to-value loan scenarios. Last week, we experienced a gradual daily increase, in line with the bond yield increase. This week, well, you guessed it. We have experienced a gradual decrease in mortgage rates in line with the bond yield decrease.
Still, lenders and investors are not exactly jumping over themselves to jump into the mortgage market. It's a wonder that mortgage rates are still near historic lows, considering the demand for mortgage backed securities has diminished to such an extent.
Federal Reserve Chairman Ben Bernanke painted a gloomy picture of the economy on Tuesday but hinted that the central bank was prepared to hold steady on interest rate cuts. The Fed has already cut the key federal funds rate 7 times since September, to the current rate of 2%, down from 5.25% before the easing began. Also, Bernanke said that some of the more troubled aspects of the economy are starting to show signs of stability. He said the battered financial markets had "improved of late but conditions remained strained." He also said the pressures on the U.S. economy are being softened somewhat by foreign demand for U.S. goods and services.
Inflation, financial sector liquidity, and the housing market continue the be the areas of major concern for not only mortgage rates, but the major economy as a whole. Economic reports have not been encouraging relating to these factors, but we haven't exactly fallen off a cliff either. Those looking at the glass half full, feel that the economy will improve in the second half, and that the economic stimulus package will aid in the effort. In my opinion, housing is the number one area that lead the economy out of it's current slump. Without a stabilized housing market, economic recovery will be stuck in the mud.
Those looking to refinance or purchase a home are still in very good shape as mortgage rates continue to be at excellent levels.
May the Mortgage Rates be with You!
Refinance Tool Box
Still, lenders and investors are not exactly jumping over themselves to jump into the mortgage market. It's a wonder that mortgage rates are still near historic lows, considering the demand for mortgage backed securities has diminished to such an extent.
Federal Reserve Chairman Ben Bernanke painted a gloomy picture of the economy on Tuesday but hinted that the central bank was prepared to hold steady on interest rate cuts. The Fed has already cut the key federal funds rate 7 times since September, to the current rate of 2%, down from 5.25% before the easing began. Also, Bernanke said that some of the more troubled aspects of the economy are starting to show signs of stability. He said the battered financial markets had "improved of late but conditions remained strained." He also said the pressures on the U.S. economy are being softened somewhat by foreign demand for U.S. goods and services.
Inflation, financial sector liquidity, and the housing market continue the be the areas of major concern for not only mortgage rates, but the major economy as a whole. Economic reports have not been encouraging relating to these factors, but we haven't exactly fallen off a cliff either. Those looking at the glass half full, feel that the economy will improve in the second half, and that the economic stimulus package will aid in the effort. In my opinion, housing is the number one area that lead the economy out of it's current slump. Without a stabilized housing market, economic recovery will be stuck in the mud.
Those looking to refinance or purchase a home are still in very good shape as mortgage rates continue to be at excellent levels.
May the Mortgage Rates be with You!
Refinance Tool Box
posted by Jim Bisnett at
1:17 PM
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