Historical Mortgage Rates – Are We Really at an All Time Low?

In April of 1971 Freddie Mac started collecting mortgage rate data. The primary mortgage market survey (PMMS) surveys lenders each week on mortgage rates for the 30-year fixed-rate, 15-year fixed rate, 5/1 hybrid adjustable-rate, and the 1-year amortizing adjustable rate. The survey is based on mortgages with a loan-to-value of 80%. The only data point [...]

How Much Will Federal Mortgage Assistance Programs Save me?

The Making Home Affordable Federal Mortgage Assistance Program is expected to help up to 9 million home owners. The program will assist with refinancing and loan modifications. President Obama is also pushing for mortgage rates to steadily decline. This will greatly help those that do refinance or get a modification by making their mortgage [...]

Mortgage Rates Trends – Have We Seen a Bottom?

As many of you know, I strongly believe in psychology when it comes to financial markets. When everyone and their brother is saying that one direction will be sustained, it is very likely that the opposite will happen; we see it all the time in the stock market. Today, we hear that mortgage rates have [...]

Lennar Offers 3.625% Mortgage Rates for Life!

Not long after Toll Brothers announced a deal for 3.99% mortgage rates, Lennar follows by offering 3.625% for life! This is the lowest rate that the home builder has ever offered. The nation’s largest home builder is offering the special on “select homes” in which the closing will occur on or before April 30th. Loan [...]

Mortgage Rates Reported Lower But Can We Believe the Banks?

I distinctly remember Bank of America CEO Ken Lewis making the statement that his company was profitable for the first two months of 2009. He also made the claim that his financial institution would be able to pay back TARP funds as early as this year. Right! Ken Lewis, many uneducated Americans may believe you [...]

Mortgage Rates Trends – March 24th – Prime Rate Pulling Mortgage Rates Lower?

When looking at trends of mortgage rates and all financial markets, I prefer to look at the long term trend before zooming into shorter term movements. If we look at the last month alone, it is very difficult to find a distinctive trend. Mortgage rates could change directions over 10 times in 30 days and [...]

Low Mortgage Rates with Inflation?

Since 1971, we have never seen a period of inflation with low mortgage rates. This begs the question, what will give in the current economy? Will we see a deflationary period continue as mortgage rates stay at historic lows? This is highly unlikely as the Federal Reserve Bank is printing money at their leisure; will [...]

Mortgage Rates Will Fall But Will It Help the Housing Market?

As we all know by now, Ben Bernanke and the Federal Reserve Bank have injected over $1 trillion into the economy in hopes of finding a floor in the housing market while stimulating the economy. No one knows if this will happen, but what we do know is that mortgage rates will fall immensely. As [...]

Mortgage Rates Will Hit Historical Lows, Thank You Ben Bernanke

On March 18th, 2009, Ben Bernanke and the Federal Reserve Bank announced that they intended to buy up to $300 billion in long term treasuries as well as soak up $750 billion in mortgage backed securities. So, the question one must ask is, “Where is this money going to come from?” Ah, yes, that printing [...]

Will the Falling Stock Market Affect Mortgage Rates?

Everyday we check our stock portfolios we see red, dark red. To compound matters, we are ambushed with news headlines that read “the lowest levels for the stock market since 1996.” Sometimes the truth hurts, but do we really need to see it on every single newspaper? It is difficult to find many analysts or [...]

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