What a week it has been a new Covid variant has emerged while at the same time, the federal reserve announced they are retiring the word “transitory”. The stock market dropped and treasury yields increased. What does all the recent news mean for real estate? Will...
Denmark, the country with the longest history of negative central bank rates is offering homeowners 20-year loans at a fixed interest rate of zero. This is very similar to the zero percent financing on cars in the US except you are buying a house. What does this...
Mortgage rates just blew through another record with the 30-year fixed rate dropping to 2.75%. If you have been watching the mortgage market, your head is likely spinning. How can mortgage rates go this low? Where do we go from here? How will the next president...
The mortgage market is an interesting animal. Long term mortgage rates traditionally track the 10 year treasury and historically trade in a very narrow band, approximately one percent higher than the 10 year treasuries. This would put mortgages today in the low 2%...
Would you bet your life on interest rates? Life insurance companies are making a huge gamble on rates, they are willing to bet their life and yours on the direction of interest rates. Why are life insurance companies suspending new policies? What does this mean for...
First, I hope everyone is doing okay with everything going on. As many banks and other lenders pull back thru the pandemic and the mortgage rate increase we are still funding. We fund and hold all of our loans in cash without leverage so we will continue to...
We are at an interesting crossroads in the economy. The Federal Reserve and economic data show that the economy is very strong with consumer spending and confidence at all-time highs. At the same time the bond market is portraying a different picture after a new...
Yes, it is hard to believe but you, along with me and millions of others, are actually making mortgage rates go down and therefore real estate relatively less expensive. How is this possible? How are your thoughts influencing long term rates and in turn real...
I took the pic after the 4th outside of Breckenridge, CO (has nothing to do with the article, but thought you would enjoy). Last week the US June jobs report was released that toppled all expectations. After a week May report the job numbers in June did not disappoint...
Last year it was announced that Libor will be phased out by 2021. Why is this such big news? According to a fed survey almost 45% of mortgages are linked to Libor and the vast majority of jumbo loans are Libor based. In total there is about 862 billion...
Pretty crazy to think of a small task like using an iPhone or a Windows computer is increasing your mortgage rates. How can a computer or phone have any impact on rates? Apple, Microsoft, and Google are the largest holders of offshore cash piles. Under the new law...
Last week Trump announced Jerome Powell as his pick to lead the federal reserve bank replacing Janet Yellen. What does this mean for the trajectory of interest rates? How is Powell working with Shake Shack to keep rates low? Will there be any radical changes going...
The fed raised rates today? Is this the real news? As many have noticed, rates have taken off over the last 30 days driving up mortgage rates substantially. What is really driving the rapid movement and what will happen in 2017. There is one wild card that could...
Let it float! I’m talking about rates that is. Why would anyone not lock in a mortgage at these historically low rates. It is a foregone conclusion that rates will increase in December (more than 80% of economists feel a hike will occur: WSJ). With such strong...
Will mortgage rates rise significantly this year? Anyone associated with real estate saw that the federal reserve did not raise rates at their meeting 3/16/16. How is this possible that rates will not increase substantially? At their recent meeting on Wednesday they...
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