When the Federal Reserve increased the Fed Rate from 0% to .25% in December, Fed Chair Janet Yellen indicated the Fed expected four rate increases during 2016. What's happening so far in 2016 is a perfect example of what I was conveying in my blog in September "Fed Rate and Affect on Mortgage Rates ... » Learn More about Mortgage Rates Drop A Lot! Federal Reserve Was Way Off Base in December
mortgage rates
What’s Bad For the Stock Market Has Been Good For Interest Rates
Even though the Federal Reserve increased the Fed Funds Rate by a 1/4% a month ago, the interest rates have dropped 3/8% over the past two weeks. The attached chart of the 10 year note shows how the rates have dropped and broke through numerous support levels. The international stock markets have ... » Learn More about What’s Bad For the Stock Market Has Been Good For Interest Rates
Yield Curve Drops Making ARMs More Expensive Relative to Fixed Mortgage
The yield curve, or difference between short term interest rates compared to long term rates have tightened. This is due to the long term interest rates (10yr/30yr notes) staying fairly stable over the past 6 months, but the short term rates (1yr/2yr notes) have gone up. The increase in short term ... » Learn More about Yield Curve Drops Making ARMs More Expensive Relative to Fixed Mortgage
Fed Increases Rates 1/4% ! Now What?
The Federal Reserve increased the fed funds rate from 0-.25% to .25-.50%. Almost immediately major banks increased their Prime Rate to 3.5%. That will have an immediate affect on many credit card rates and home equity lines. As I conveyed in my previous blog in September Fed Rate and Affect on ... » Learn More about Fed Increases Rates 1/4% ! Now What?
Mortgage Rates Jumped Today
Interest rates have been very volatile over the past couple months. Today we had multiple mortgage rate increases. If you look at the attached 10 year note chart you can see how rates jumped approx 40 basis points from the middle of October to early November. They were slowly coming down over the ... » Learn More about Mortgage Rates Jumped Today