Comments on: Save A Bundle With A 15-Year Refi http://www.bankaholic.com/save-a-bundle-with-a-15-year-refi/ Compare the Best CD (Certificate of Deposit) Rates, Highest Money Market Rates, Best Savings Accounts, Bank Deals, Interest Rates and Bank Reviews! Thu, 09 Feb 2012 08:51:03 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Jeff Hutchison http://www.bankaholic.com/save-a-bundle-with-a-15-year-refi/comment-page-1/#comment-180804 Jeff Hutchison Fri, 09 Apr 2010 13:40:45 +0000 http://www.bankaholic.com/?p=5591#comment-180804 Since the Feds have stopped purchasing Fannie Mae Mortgage Backed Securities and Ginnie Mae Mortgage Backed Securities prices on these investments have decreased dramatically. This past year and into this spring mortgage rates were "artificially" low due to the Federal Reserve Boards 1.25 trillion dollar buying spree. Now that they are finished yields on the Fannie Mae and Ginnie Mae mbs's will not remain low as the 10 year treasury note yields increase. Rates are most likely headed up even further unless, in my opinion, the housing market does not show increased signs of improvement this spring and summer. With fewer mortgages written there will be fewer MBS's for sale and simple supply and demand should increase pricing and decrease yields. However, since the treasury notes and MBS's are similar investments traders may foresake the MBS market for the treasury market and could see an even further sell off in the mbs market which would be bad, very bad, for mortgage rates. Kind of a wait and see at this point but most economists I think expect rates to follow treasury yield up up and away. Since the Feds have stopped purchasing Fannie Mae Mortgage Backed Securities and Ginnie Mae Mortgage Backed Securities prices on these investments have decreased dramatically. This past year and into this spring mortgage rates were “artificially” low due to the Federal Reserve Boards 1.25 trillion dollar buying spree. Now that they are finished yields on the Fannie Mae and Ginnie Mae mbs’s will not remain low as the 10 year treasury note yields increase.

Rates are most likely headed up even further unless, in my opinion, the housing market does not show increased signs of improvement this spring and summer. With fewer mortgages written there will be fewer MBS’s for sale and simple supply and demand should increase pricing and decrease yields. However, since the treasury notes and MBS’s are similar investments traders may foresake the MBS market for the treasury market and could see an even further sell off in the mbs market which would be bad, very bad, for mortgage rates. Kind of a wait and see at this point but most economists I think expect rates to follow treasury yield up up and away.

]]> By: Wendell Brock http://www.bankaholic.com/save-a-bundle-with-a-15-year-refi/comment-page-1/#comment-176814 Wendell Brock Thu, 17 Dec 2009 21:13:44 +0000 http://www.bankaholic.com/?p=5591#comment-176814 This is great info - what are the rates for the Dallas, TX area? This is great info – what are the rates for the Dallas, TX area?

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