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DATE
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Mortgage
Rates Information
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7/17/07
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11:44 pm.
So most U.S. Treasury notes
have begun to rise in recent days.
As the dollar slumps against
other foreign currency (mostly the
Euro). How will this affect mortgage
rates? Well they have been holding
fairly steady. The rise in the T-Bill
has help to offset the worries of
inflation and the high foreclosure
rates. But will it be enough to
hold off another rate surge? It
looks like for the time being rates
are holding steady even as the Fed
Chair reports on inflationary factors
in the economy.
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7/5/07
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1:22 pm.
So June had seen the highest jump
in rates for the year, July is starting
off better for many rate watchers,
30 year and 15 year mortgage rates
have dropped slightly this week.
This is also spurred on by inflation
being held in check. Last week the
Federal Reserve met and did not
raise rates and the markets feel
as though the core inflation issues
have eased. Of course this excludes
inflation for food and energy which
has raised.
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6/26/07
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1:22 pm. Home
prices have dropped, REALLY DROPPED.
The lowest in 16 years! Consumers'
confidence is at a 10 month low.
To add on to that data, for the
forth month in a row new home sales
have slumped. So this should make
you think rates will go down to
help stimulate the economy. Well
don't bet on it. The Fed is still
worried about inflation and investors
do not see the Fed reducing rates
anytime soon.
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6/21/07
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2:23 pm. As
stocks jump up and down day by day
the markets very unpredictable.
Oil prices are now below 70
per barrel and there is strong manufacturer
data. Bond yields are moving higher,
expect mortgage rates to keep going
up.
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6/14/07
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5:34 pm.
Foreclosure hit an all time high.
These numbers are from the first
three months of the year and most
likely due to the problems in the
sub prime industry. Consumers are
having issues with making payments
on time. On the mortgage rate side,
once again rates are moving upwards
as traders predict there will be
no lowering in interest rates by
the Fed. The Federal Reserve appears
to be more concerned about inflation
than a slumping economy and therefore
mortgage and bond traders are predicting
no decrease at the next meeting.
Rates will continue to rise.
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5/30/07
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4:38 pm.
The Federal Reserve left key interest
rates alone but made mention of
some serious issues in the economy.
They appeared to shrug off concerns
over a lagging housing market and
key into a concern about rising
inflationary factors. Although the
Fed did not raise rates when they
talk about inflation on the rise,
rates tend to jump. Also, with the
slump in housing market there is
a decrease in available equity in homes
because of decrease demand. This
causes pressure on the consumer
and may curtail retail spending.
Not to mention out of control gas
prices (which the fed did not mention).
All in All rates will probably adjust
on the news and not on the fact
that the FED left rates alone.
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5/14/07
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2:05 pm.
The markets are jumpy as they are
concerned over data this week. The
main issue appears to be April's Consumer Price Index.
Traders are scared that its' arrival
will show inflation is on the rise.
Remember, if inflation shows up,
rates go up!
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5/09/07
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2:48 pm.
The Fed's meeting for May seems
to have went as expected. No increase
in key interest rates. This is the
seventh straight meeting that the
Federal Reserve left rates alone,
why? Well it appears that the Fed
is not fearful of inflation and
they seem to think the economy is
slowing but at an acceptable rate.
Mortgage rate may inch higher as
traders pour money into stocks and
then the pressure on the bond
to yield higher will increase. This
increase will in turn place pressure
on mortgage rates to go up..
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5/03/07
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12:18 am.
So orders for factory made products
came in and they are good. This
means the economy is stronger than
expected. Also the Dow is hitting
record highs. However, oil prices
are also hitting a record high.
All this data has placed pressure
on the bond an in turn mortgage
rates are inching ups.
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4/26/07
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5:02 pm.
The Dow market has hit an all time
high. Mortgage rates have dropped
slightly recently but this up beat
economy may cause them to rise.
High gas prices however are keeping
rates in check. A note is that a
major new home builder showed surprising
good numbers in Q1. This may mean
that the home sale slump may not
be that drastic as predicted.
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4/19/07
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3:52 pm.
Good news on the inflation factors
today. The core inflation rate was
at a lower than expected mark. Although
energy costs remain expensive the
remainder of cost in the economy
seem to be easing and inflation
is holding. If this keeps up rates
may dip.
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4/16/07
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3:42 pm.
A surprise! Consumers appear to
be spending more than many speculators
thought. The consumer has brought
this economy out of many slumps
and they have prevented many slides
down. Well, this surprise appears
to be spurring the markets and may
have held off a large jump in mortgage
rates.
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4/11/07
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3:10 pm. The
Fed's notes on last months meeting
were released today. It appears
that the Federal Reserve's main
concern is inflationary factors.
The economy seems to be ok but fears
that Fed's may raise rates have
caused the markets to drop and the
bond yield to move higher. This
usually means interest rates are
going to rise and rise rapidly.
Beware of the jump in rates every
time the word inflation is mentioned
in the Fed's notes.
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4/04/07
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12:48 pm. There
has been a mixed bag of economic
data flowing in and the markets
are apparently a little confused
but rates are still holding . That
is good because all of last weeks
indicators showed that they where
going to move upwards. But, today
the tensions on the oil markets
have eased and the stock markets
have absorbed the mortgage default
issues over the past few days. All
this has put less pressure on mortgage
rates to go up. The Markets are
moving higher as are the prices
of bonds, so the yield is dropping.
Dropping yield equals rates staying
the same or going lower (usually!)
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3/27/07
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5:10 pm. It
only took a day for those factors
to show up. No dramatic rise is
rates but the fear is in the markets.
Look at the cost of oil. Expect
the price per barrel to rise which
usually would lower rates but in
this case - rates will go up due
to the reasoning behind the rise
in price.
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3/26/07
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1:24 pm. What
a surprise to the markets. February
new home sales were down 3.9%. This
was completely unexpected by market
watchers. The fear of a slowing
economy is growing. In the short
run the bond is going higher pushing
the yield down which is lowering
the average mortgage rates. Look
for a drop in rates on this data
but be careful rates may jump back
up if inflationary factors rise.
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3/21/07
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3:19 pm. The
Fed ended their meeting without
raising interest rates. They state
that inflation in the Market is
still a factor. However, they also
stated that the economy still appears
to be strong. This leaves investors'
thinking that there is little likelihood
that in the near future the Reserve
would consider raising rates and
if anything, they will likely lower
them or leave them unchanged for
a long period of time. Mortgage
rates may dip on this news but they
will not likely dramatically drop
due issues in the sub prime lending markets.
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3/19/07
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1:44 pm. Stocks
have recovered on suggestions that
corporate mergers may be in the
near future. Mortgage rates are
on hold waiting for the Federal
Reserve's meeting on interest rates.
Most expect that rates will not
be changed. Some hope that a lowering
may occur but that seems doubtful.
Expect rates to hold steady while
stocks recover and data flows in
over the next few days.
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3/15/07
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4:03 pm. The
mortgage market has been going crazy
lately. Well, actually it is the
B,C,D or what is also called "alternative"
lenders. These Banks/Lenders give
out loans based on non standard
borrower qualifications. Well, many
of these loans are defaulting and
the banks can no longer 'fund' new
loans that fit the previous lending
criteria. This had occurred in the
mid 90's and it has reappeared and
again it is causing the same
damage to the markets as it did
on the past. Several large lender
will go into B.K. and this pressure
in the market will roll over into
the standard lenders. They may stricten
their lending requirements and slow
down cash flow. So less people will
be able to qualify for the larger
homes. The best way to resolve this
would be for the Federal Reserve
to lower rates and get control over
the 'alternative' lenders ability
to loan cash to anyone at any rate
for any term. But with inflation
on the rise and the current free
market Fed (hands off) it looks
like no rate reduction is in the
near future. Rates may move up as
cash from lenders tighten up and
inflation factors reappear.
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3/09/07
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8:00 am. The
consumer may be slowing in their
spending habits. This may be good
to help reduce the growing debt
market. However, it will reflect
on rates. Why is the consumer slowing
their habits? It appears rising
gas cost are once again taking the
extra cash out of the consumer pocket
and the roller coaster markets have
scared the average traders away
from taking chances in the stock
markets. These factors may cause
a brief slumped in mortgage rates.
Keep an eye on the rate markets
when the consumer start to slow
spending, it may be time to lock
in..
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