Tag Archives: dan tharp

Should I Lock Or Float This Week? – Fed Minutes Expose Rising Interest Rate Risk

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The unrelenting selling in the MBS markets has gotten a bit out of hand, and has a panicked feel. This may have something to do with the Fed, who suggests that the present quantitative easing (QE)  program may be modified in the near future. This is not a surprise as Fed chairman Ben Bernanke said, at some point the Fed would begin exiting, likely inch by inch but obviously not in one fell swoop as the market decline over past few weeks seems to imply (see chart).

The current QE program involves the Fed purchasing $85 billion per month in mortgage-backed securities (MBS) and Treasury bonds. The Fed’s goal with QE is keeping long-term interest rates, including mortgage rates, low. Continue reading →

Should I Lock Or Float This Week : May 13, 2013

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Over the past 7 trading days, Mortgage rates were wounded with 2 of the largest one-day spikes in over 2 years. Rates rose last week with average rates a 30-year fixed rate mortgage rising from last week’s 3.35 percent to 3.42 percent with buyers paying all closing costs and 0.7 percent in discount points.

We are in a definite “locking” bias at the moment. As I am publishing this blog, rates are still trending worse this Monday morning. Continue reading →

Should I Lock Or Float This Week : April 29, 2013

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Mortgage rates fell again last week and are again near record lows.

According to Freddie Mac, the average rate for a 15-year fixed rate mortgage did achieve a record low of 2.61 percent as compared to 3.1 percent one year ago.

The average rate for a 30-year fixed rate mortgage fell to 3.40 percent and near the record low of 3.31 percent.

Low mortgage rates are helping homeowners with refinancing and are boosting housing markets as more buyers can qualify for mortgage loans. Continue reading →

Don’t Get Fooled By Tricky Real Estate Terms

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When looking to buy or sell Sacramento real estate, confusing terminology can leave you feeling somewhat uneasy. From a multitude of numbers to marketing jargon, property listings can give you an overwhelming amount of information — and it’s hard to know what’s important. Continue reading →

Why The Sudden Change in Rates? Ask The Fed

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The minutes for the Federal Open Market Committee (FOMC) meeting held March 19 and 20 were released on Wednesday April 10, 2013. These periodic meetings by the FOMC cover a wide-ranging group of topics that impact the overall economy in the United States.

The decisions made and acted upon from the FOMC meetings often sway the real estate and residential financing markets. Some highlights of the recent FOMC minutes for the March meeting include: Continue reading →