Mortgage markets improved last week as pricing followed a roller coaster-like pattern. After touching a 6-week high Tuesday, rates rallied to weekly lows Thursday, and then jumped back higher Friday. Despite the improvement last week overall, mortgage pricing remains significantly worse from the all-time lows set in late-November. Oddly, last week’s most prominent mortgage-related story… Continue Reading
Monthly Archives: December 2009
Housing Starts Jump; Home Sellers Lament.
Housing Starts jumped last month as builders got back to business. It’s a telling sign for the economy, but bad news for next season’s sellers. With more homes coming online, home prices may be slow to rise nationwide. A “Housing Start” is a privately-owned home on which construction has started. In November, starts rose by nearly… Continue Reading
A Simple Explanation Of The Federal Reserve Statement
The Federal Open Market Committee voted to leave the Fed Funds Rate within its target range of 0.000-0.250 percent. In its press release, the FOMC noted that the U.S. economy “has continued to pick up”, that the jobs markets is getting better, and that housing market has shown “some signs of improvement” lately. It’s the… Continue Reading
Fannie Mae Gets Tough(er) On Borrowers. Again.
Fannie Mae raised the bar for mortgage applicants this past weekend. Getting approved for a home loan just got harder. In its official announcement, Fannie Mae says the updates minimize long-term lending risks. If that’s the case, this won’t be the last guideline change Fannie Mae makes — especially with loans defaulting at an above-normal… Continue Reading
The Federal Reserve’s Relationship To Mortgage Rates
The Federal Open Market Committee meets today for the last time in 2009. It’s a 2-day meeting and the Fed is expected to leave the Fed Funds Rate near 0.000 percent. But that doesn’t mean mortgage rates won’t change. See, a major misperception among the public is that the Federal Reserve sets mortgage rates. That’s false. … Continue Reading
What’s Ahead For Mortgage Rates This Week : December 14, 2009
Mortgage markets worsened for a second consecutive week last week amid debt default concerns and stronger-than-expected economic data. Dollars left the bond market and mortgage rates suffered. After re-reaching an all-time low December 1, mortgage rates have since rolled back to mid-November levels. Rates are still low right now. Just not as low. And meanwhile, last… Continue Reading
Strong Retail Sales Data Could Lead To Higher Mortgage Rates In January
If you wonder what mortgage rates and home affordability will look like next year, today’s Retail Sales data may hold your answer. Versus October, November’s ex-auto sales were up by more than 1 percent. Analysts expected the increase, but not an increase of this magnitude. “Ex-auto” means that motor vehicles and parts are excluded from the data. Home values… Continue Reading
How To Increase Your 2009 Mortgage Interest Tax Deduction
For many American homeowners, interest paid on a mortgage is tax-deductible in the year in which it was paid. Knowing that, eligible homeowners can increase their 2009 tax deductions just by making their January 2010 mortgage payment before the end of the year. By paying in 2009, the mortgage interest paid can be applied against 2009′s itemized tax deductions even… Continue Reading
What’s Ahead For Mortgage Rates This Week : December 7, 2009
Mortgage markets finally reversed course last week, selling off with fury and causing prices to plummet. When bonds prices fall, rates rise. The action broke a multi-week winning streak, much to the disappointment of rate shoppers everywhere. Rate hikes came in stages. First, early in the week, mortgage bonds fell out of favor as traders… Continue Reading
Pending Home Sales Data Forecasts Higher Home Values Next Month
When a home seller accepts a contract on an MLS-listed property, the property’s status changes from “Active” to “Pending”. This means the home is scheduled to sell, but not yet sold. Each month, the National Association of Realtors® tallies the number of pending homes and publishes the data as the Pending Homes Sales Index report. In October, for… Continue Reading