Banks Not Passing Along Rate Drop? After a dramatic drop late Wednesday, 30-year mortgage rates have leveled off at 4 5/8% at the moment. Given the size of the Fed commitment — up to $1 trillion in new cash aimed at mortgages — you’d expect rates in the low 4’s. Why hasn’t that happened (or...Read More
If you’ve been out of the loop the last 48 hours or so, the big finance-related news is the political firestorm precipitated by AIG’s bonuses, and the Fed’s decision to create $1 trillion in new money (by buying mortgages and mortgage-backed securities). On the blogosphere, there is a quick consensus emerging that the the public,...Read More
Mortgage Rates Tumble In a surprise, [The Federal Reserve] dramatically increased the amount of money it will create out of thin air to thaw out the still-frozen credit markets that have cramped lending to consumers and businesses alike. Indeed, the immediate effect on the bond markets was striking, with prices rising and yields dropping sharply...Read More
Ben Bernanke’s Theme Song Maybe, somedaySaved by zeroI’ll be more togetherStretched by fewer Thoughts that leave meChasing afterMy dreams disown meLoaded with danger Maybe I’ll winSaved by Zero Holding ontoWords that teach meI will conquerSpace around me Maybe I’ll winSaved by zeroMaybe I’ll winSaved by zero–Lyrics, “Saved by Zero“; The Fixx Who knew? Personally, I...Read More
Combating a Deflationary Mindset One of the unintended consequences of falling prices — for new homes, existing homes, mortgage rates, etc. — is that would-be Buyers get out of the way, and wait for even bigger drops. There’s some anecdotal evidence that that’s the psychology behind many Buyers’ reluctance to buy or even refinance at...Read More
