mortgage rate

Coronavirus and the Housing Market

Lower Interest Rates vs. Economic Uncertainty How will coronavirus affect the housing market? The answer likely depends on two questions: 1) which Buyers?; and 2) which segment(s) of the housing market — specifically, which price points? So, at the lower end of the market, especially in the Twin Cities, there remains an acute shortage of...
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Crying Wolf — Again — on Mortgage Rates

WSJ: “Average Rate on a 30-year, Fixed-Rate Mortgage was 3.75% Last Week, Down from 4.94% in November” Sooner or later, industry mavens predicting higher mortgage rates will be right. But not this year. From a peak of almost 5% late last Fall, rates fell to 3.75% last week. Count that the 4th (7th? 9th?) year...
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“Cheap” vs. “Easy” Credit

Housing Market Finance, Then & Now “If you don’t have a job — or are afraid of losing one — it doesn’t matter how low interest rates are.” –Ross Kaplan Long before there was a housing bubble (seemingly, 3 lifetimes ago), there was a credit bubble. As a result, seemingly anyone who could complete a...
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North Korea & the Housing Market

Flight to Safety No, I don’t think a nuclear conflagration would be good for the U.S. housing market (or anything else). And, there’s no denying that ongoing North Korea – U.S. saber-rattling may have a chilling effect on nervous home Buyers. But, in the meantime, one of the predictable side effects of major geopolitical uncertainty...
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Interest Rates Rocket Higher in Wake of Trump Win

Post-Election Aftermath:  Stock Market Boom, Bond Market Bust Overshadowed by all the political fallout the last week is the election’s effect on interest rates:  up, quickly. According to Edina Mortgage’s Steve Mohabir, subsequent to the election, interest rates for a 30-year mortgage for well-qualified borrowers jumped a huge (“Yuge??“) 50 basis points, from 3.5% to over...
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“The Economist” Warns on U.S. Housing Finance

When Government Gives You a Free Subsidized Lunch . . . Take It! “America’s housing system was at the centre of the last crisis. It has still not been properly reformed.” —The Economist, “Nightmare on Main Street:  the Horror Underlying America’s Housing Market“; August 20th -26th 2016. If you don’t want something (else) keeping you...
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