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FED

Mortgage Rates January 30, 2009

by steverussell on January 30, 2009 · 2 comments

The bond market had a rough day yesterday and yet it has had little affect on today’s mortgage rates. This is likely due to previous rate increases to try and slow down the overwhelming rush to refinances that has underwriting backed up for weeks.

Something interesting is happening with the FED’s buy back program for mortgage backed securities. As mortgage bonds are traded, they come at certain "coupon" rates and are sold in .5% intervals. For instance, right now we are watching the 4% Fannie Mae

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Mortgage Rates January 28, 2009

by steverussell on January 28, 2009 · 5 comments

in Gulf Coast Mortgages

Today marked the first FED meeting since December 16th when they announced the FED would be aggressively buying mortgage backed securities through the first 6 months of 2009.

The news was as expected with rates remaining unchanged and a commitment to keep them unchanged until further notice.

The bond market reacted negatively to the news as it is seen as a positive for the economy. Bond traders are selling this afternoon

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Mortgage Rates January 23, 2009

by steverussell on January 23, 2009 · 3 comments

in Gulf Coast Mortgages

According to FED member Frederic Mishkin in an interview on CNBC this morning, we could see inflation begin to creep into the economy based on all the government programs on the drawing board.

If there is anything that will scare away bond investors…it is the word inflation. This combined with the summer driving season right around the corner which will inevitably lead to higher oil and gas prices means that we will likely see much higher mortgage rates in

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