You may have read articles recently that mortgage rates have risen. Unfortunately, that is the case. Rates approached 6% on a 30 year fixed which is very high compared to what we have seen this year so far. Still historically low, these rates still put a damper on refinance activity, and many people who were waiting for rates at 4.5% or lower were left in the dust.
Mortgage rates have risen over the past week over .5% to the highest levels we have seen for 6 months. The main factor at play that has caused this has been the oversupply of money that is being pumped into the system in the form of government bond auctions.
The markets yesterday went into a selling frenzy as fear of impending inflation caused investors to flee from long term bonds, a negative for mortgage ...
There have been many write-ups by the media recently about the proposed government intervention to drop fixed mortgage rates to 4.5%. 4.5% would be the lowest mortgage rates have been since the 1960's and would be sure to stoke the floundering housing market.
So what is the reason for this proposed rate reduction and is it for real? Mortgage rates today sit at the lowest levels we have seen in 2008, with 30 year ...
posted by RJ Baxter December 09, 2008 10:55 | permalink | comments(0) | Market CommentaryOctober, 2008 Stock Market Plunges but Mortgage Rates Go Up
The recent pummeling that the stock market has taken is disturbing in the least, and has hammered most everyone's investment portfolio. How low it will go has yet to be seen. However, with a downturn in the stock market, there is usually a silver lining- lower mortgage rates.
But we haven't seen lower mortgage rates when stocks take major downturns. Why is this?
To understand what's going on, first it's necessary to ...
