Interest Rate Update – With a New Chart

We’re in a very interesting place as far as interest rates go. They seem to be pretty much stuck in neutral regardless of what the market does. Looking at the graph above you can see that U.S. Treasury yields (red line) are close to a 13-month low, and seem poised to stay there. Mortgage-backed securities...

Why Government Can’t Sell Fannie and Freddie

Fannie Mae and Freddie Mac (the Agencies) were taken over by the government back in 2008 when it appeared that their cash reserves would not be sufficient to make their payments to the bondholders who lent them the money that they lent to homeowners. There was no explicit guarantee that U.S. taxpayers would make good...

Why China Could Push Rates Up – And Why They Probably Won’t

If you are like me you would rather not think about the fact that China, while attempting to address their economic problems, might have a significant impact on the mortgage interest rates we pay. But even though I’d rather not think about it, I’m paid to do so, so here I go. How are mortgage...

Wells Fargo Hit With Another $ Billion+ Settlement

You might think that I revel in the woes of Big Banks too much, but… Oh heck I admit it. But this is fun. Wells Fargo announced today that they have agreed to pay $1.2 Billion to resolve claims against it related to wrongdoing leading up to and during the mortgage crisis. They were accused...

Interest Rates Continue to Slide

On January 15th I wrote that interest rates were going to make a strong move downward in the next week. That turned out to be pretty much accurate. Rates continued to slide the following week, albeit at a more moderate pace. This week interest rates at the retail level (the pricing you, as a consumer...