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Tag: Federal Reserve

Mortgages: The Fed Wants To Raise Rates, Blah, Blah, Blah

Mortgages: The Fed Wants To Raise Rates, Blah, Blah, Blah

The Fed’s hint last week that it may again raise mortgage rates sent an instant shudder throughout the mortgage marketplace. Mortgage interest levels for 30-year fixed-rate financing “shot up” into the 3.7 range and the usual dark murmurings about the hideous impact on home sales began to circulate. We’ve seen this show before. For much […]

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The Real Reason Mortgage Rates Keep Falling

The Real Reason Mortgage Rates Keep Falling

By now mortgage rates were supposed to moving higher but that hasn’t been the case. Instead, lenders are elated to unload cash at rates which are beginning to approach the record lows seen in 2012. The loser in all of this is the Federal Reserve. It raised rates in December and the nation’s banks instantly […]

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Mortgage Rates Defy Fed Increase

Mortgage Rates Defy Fed Increase

Mortgage rates have fallen since the decision of the Federal Reserve to increase interest levels. The Fed announcement came on December 16th. It raised the overnight lending rate for banks by .25 percent and the nation’s banks instantly went into action, increasing the prime rate for borrowers by .25 percent while not touching the measly […]

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Mortgage Rates: Hike Not A Sure Bet

Mortgage Rates: Hike Not A Sure Bet

Mortgage rates have turned higher during the past few weeks and with a December Fed rate hike predicted by many it seems possible that millions of Americans are about to face steeper real estate costs. The catch is that by “steeper” we may not see much of an increase at all. Despite whatever it is […]

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Mortgage Rates: Back In The Dumper Again

Mortgage Rates: Back In The Dumper Again

For all the talk about the Federal Reserve and raising interest rates the fact is that mortgage rates have been headed downward for some time. As of October 8th the cost of a 30-year, fixed-rate mortgage was 3.76 percent according to Freddie Mac, down significantly from the 4.19 percent we saw a year ago. That […]

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Is It Time To Downsize Mortgage Debt?

Is It Time To Downsize Mortgage Debt?

Question: We want to buy a first home. We have a joint income of $80,000 a year and no debts of any kind. A loan officer says with $25,000 for the down payment and closing costs we could get a $250,000 mortgage. We have the cash but our problem is the monthly cost: $2,000 — […]

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With Mortgage Rates Down Why Are Home Sales Lagging?

With Mortgage Rates Down Why Are Home Sales Lagging?

It’s been nearly a year since the Federal Reserve announced that it would reduce – or taper – its purchases of mortgage-backed securities and other long-term debts from $85 billion a month to something less. Prior to the announcement the marketplace had moved in anticipation of this event, going from the lowest mortgage rates in […]

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Why The Fed Doesn’t Want To Raise Mortgage Rates

Why The Fed Doesn’t Want To Raise Mortgage Rates

If you’re wondering where mortgage rates are headed you’re not alone. It used to be that mortgage rates reflected supply and demand but that’s no longer the case. The Federal Reserve is now spending $85 billion per month to purchase mortgage-backed securities ($45 billion) and U.S. Treasuries ($40 billion), thus holding down interest rates for […]

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Are Real Estate Mortgages Easier To Get?

Are Real Estate Mortgages Easier To Get?

The latest loan officer survey from the Federal Reserve says financing is easier to get. It also says mortgages are harder to get. I say the subjective feelings and fanciful intuitions recorded by the Fed are wrong. Let me explain why: “Domestic banks, on balance, reported having eased their lending standards and having experienced stronger […]

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Will Higher Mortgage Rates Kill Real Estate?

Will Higher Mortgage Rates Kill Real Estate?

There’s no doubt that mortgage rates are on the rise. Freddie Mac says interest levels for 30-year fixed rate loans have risen roughly .6 percent since the start of May and there’s little doubt that this week’s rate announcement will be well above 4.0 percent. So, will higher mortgage rates kill the real estate market? […]

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