Interest Rates and Inflation

10/16/17 | Casey Fleming | It’s been a while since I wrote about interest rates and inflation.  In the last six weeks rates have crept up about 0.250%.  Let’s talk about what happened. As you may recall, stocks and interest rates tend to move together most of the time.  This is because as stock prices...

Why Congress Can’t Sell Fannie Mae and Freddie Mac

8/5/2017 | Casey Fleming | Politicians make a lot of hay talking about privatizing Fannie Mae and Freddie Mac.  These formerly private companies were taken over by the government under the Bush administration shortly after the financial crisis began. Depending on whom you believe, the purpose was either to put a halt to irresponsible lending...

Mortgage Rates Hold Steady in Mid-July

7/15/2017 | Casey Fleming |  Last week I predicted that underlying conditions (think wholesale interest rates) would probably improve during the week just ended, but that economic reports and announcements by Fed members carried too much risk for mortgage rates to improve much in mid-July.  I noted that we would probably see lock opportunities on...

After the Feds: Mortgage Rates Want to Go Down

6/23/2017 | Casey Fleming The dust has settled, so we have been looking for clues as to what investors think about the Fed’s move, and how that will affect mortgage rates.  What we can conclude is that either the move was a yawner (we knew that the Fed move was expected) or that investors simply...

Anticipation: Will the Feds Raise Interest Rates?

6/13/2017 | Casey Fleming Last week I wrote that we were almost certainly going to see the Feds raise short-term rates when they meet this week on Wednesday, June 14th. I predicted that mortgage rates would rise starting Thursday in anticipation of what the market would do in response to whatever action the Feds took. If...

Are Interest Rates Coming Back Down?

Mortgage interest rates rose rapidly beginning the week before the Board of Governors of the Federal Reserve met on March 14th and 15th.  As expected, the Feds raised short-term rates, and that spurred a rally in mortgage interest rates almost immediately. They had come up a long way, however, so they had a long way...

Interest Rates Behaved This Week

Interest rates pretty much flatlined this week.  As I wrote last week it was a busy week for economic reports, but they pretty much all came in very close to where the consensus of a survey of economists thought they would.  Most showed a very slight surprise to the upside, which is not good for...

Will Interest Rates Drop This Week?

Last week I wrote that this could be the week that interest rates begin to drop because rates are probably a little higher than where they should be and it is a very light week in terms of economic reports.  Political news, rather than economic news, seems to have driven investors away from bonds for...

Plan to Privatize Fannie Mae and Freddie Mac

I’ve been writing for several years that lawmakers have been making a lot of noise – but no progress – on plans to privatize Fannie Mae and Freddie Mac. If you recall, the Bush administration forced the government takeover of the agencies in 2008, saying that their loan loss reserves were too low to sustain...

Mortgage Rates – New Year, New Attitude?

What have mortgage rates been up to so far in 2017?  Are interest rates up, down, or sideways?  In a previous column, I wrote that interest rates would jump up if Donald Trump won the election, and probably settle down once the news had been digested.  Let’s see how I did. As we know by...