“Geithner Says China Has Faith in U.S.” –headline, The New York Times (6/3/09) [Editor’s Note: Sorry, I’m on a China kick — just one more in that vein. And yes, it does bear on real estate. In fact, whether China keeps buying U.S. debt — and therefore whether mortgage rates stay low — is probably...Read More
Didn’t Lock? Wait, and Hope for the Best Nice piece exploring the potential fallout from this week’s dramatic spike in mortgage rates (Potential Consequences of 5.5% Mortgage Rates). Although I think it’s premature to entertain all the negative consequences — after all, it’s possible that rates may drop as quickly as they popped — the...Read More
Jumbo Loan Premium to Shrink With the collapse last year of the private mortgage bond market on Wall Street, home buyers, builders and refinancers who relied on jumbo financing were left with few sources except at punitively high interest rates and huge down payments. –Kenneth Harney, “A Big Boost for Buyers Seeking Jumbo Loans” (The...Read More
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
Mortgage Rates: Stuck at 5% Local lender and blogger Alex Stenback has a nice post from yesterday, “Lower Mortgage Rates Stymied By Supply,” that explains what’s happening with mortgage rates right now — and why.Read More
The Right Stimulus for Housing There now seems to be a clear consensus that, to help the economy, government must first do something to help housing. However, there’s still no consensus about what. The two leading strategies are: One. Using taxpayer money to basically subsidize mortgage rates down to some previously unheard of number, like...Read More
