Rates - or - Maybe Not Archives

October 16, 2008

Mortgage Rates Spiking

The following is an article from CNNMoney and gives an update on the
current upswing in the everyday (these days!) volatility of mortgage rates:

(Also, remember that a bank/broker can only lock an offered interest
rate against an actual property address....and with an actual new or
current borrower's conditions. The lock is good only for a certain
number of days and can be extended for a few days, at a cost.
If the lock expires, or a different property is ultimately chosen for a
new buyer, the rate and the lock go away and borrower starts over.)

Mortgage rates spike - biggest jump since '87

Rate on 30-year fixed mortgages jump could climb higher still.

One cause: Government's rescue efforts.

By Les Christie, staff writer
Last Updated: October 16, 2008: 10:24 AM ET

NEW YORK ( -- Low mortgage rates, the one bright spot in a devastated housing market, are on a rapid rise.

Freddie Mac reported Thursday that the average 30-year fixed-rate mortgage has hit 6.46% - up from 5.94% the week earlier. That represented the largest weekly increase since April 1987, when the 30-year rose 0.84 points. also charted the spike. The investment Web site reported that the average interest rate on a 30-year, fixed-rate mortgage jumped to 6.74% on Wednesday from 6.2% the Wednesday before.

Translation: A borrower with a $200,000 mortgage would pay about $1,225 a month at 6.2%, and $70 more, $1,295 at 6.74%.

Mike Larson, an analyst with Weiss Research who participates in's weekly mortgage rate surveys, expects to see rates top....

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October 31, 2008

What's the Rate Today? (Use a Crystal Ball or....)

Old Article (2002), but still applicable

(...though usually the 10-year Treasury note benchmark now is closer to 3 percentage points spread...see below):

"If you're going to purchase a home or refinance, it's a good idea to grasp how mortgage interest rates are linked to the bond market. Understanding the relationship can give you a heads up on when rates will be moving higher or lower.

Banks and other lenders use the bond yield on the government's 10-year Treasury note as the benchmark for setting mortgage interest rates.

There's always a spread between the Treasury note bond yield - which is the yearly return paid to bondholders - and what lenders are charging as interest for a home loan.

The spread lately has been.....

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November 3, 2008

Do Rates Drop After a Presidential Election?

(This article came to me from an anonymous loan officer) elect2008.gif

No political views are intended in this email. This is for information purposes only and is intended to help you discuss this topic with your clients!

Not only do I like this article, but it reminds us that present rates are so good compared to any other time in recent history.


Do Rates Drop After a Presidential Election?

Everyone is buzzing about the prospect of lower mortgage rates after the Presidential election. Is there any truth to the rumor that mortgage rates drop after Presidential elections? What about changes in trends?

It's important to note a few things about the history of mortgages in the U.S. before I explain why....

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November 25, 2008

Dropping Rates....Washington's Nov. 24th Move

This just came in from my secondary market rep this morning:


Stock market up; bond market prices higher, and mortgage market on fire this morning

The Fed has made a massive move to unlock the credit markets that so far have resisted all attempts to light the fire. In a surprising move this morning the Fed announced an $800B spending binge that may finally get mortgage rates down. The move is Bernanke's attack on deflation and getting credit markets functioning again.

The Fed will purchase as much as $600B in debt issued or backed by government-chartered housing-finance companies.

It will also set up a.....

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About Rates - or - Maybe Not

This page contains an archive of all entries posted to Eileen M. Carda in the Rates - or - Maybe Not category. They are listed from oldest to newest.

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