Close
Close
  • Archive
    •     2016
    •     2011
    •     2010
    •     2009

Kimberly Clinton

ABR, CSP, CNHS, SMP
eXp Realty LLC

Kim Clinton's Blog

Staying in tune with the dymanic nature of social media to meet the needs of today's tech savy real estate consumer.

My quirkly interest in technology, social media and gadgets helps keep me personally connected to the real estate market and the interest, needs and demands of those around me.

Mortgage Rates Move Higher


February 11th, 2011


Mortgage Time   

Compliments of Bob Boyd, Senate Mortgage Banker

Mortgage Market News for the week ending February 11, 2011
  

Mortgage Rates Move Higher

Inflation concerns and a higher than expected January budget deficit caused mortgage rates to move a little higher during the week. Solid demand for this week's longer-term Treasury auctions helped prevent a larger increase in mortgage rates. Investors hoping for inflation relief from the Fed were disappointed. In testimony on Wednesday, Fed Chief Bernanke suggested that Fed officials view overall inflation levels 

as low and have no near-term plans to tighten monetary policy to fight rising inflation.

Over recent months, mortgage rates have moved higher due to investor concerns that future inflation will rise significantly. Inflation can come from different sources. A desirable source is inflation which results from stronger economic growth, which leads to more jobs and higher demand for goods. On the other hand, inflation which results from large budget deficits comes with very few benefits. Both are pressuring mortgage rates higher right now, but at least with an improving economy more people are able to buy homes.

On Friday, the Treasury released its recommendations for reforming Fannie Mae and Freddie Mac. According to Treasury Secretary Geithner, this report is a starting point for a national debate. The central question is what role the government should have in the mortgage market. Geithner stressed that changes will take place very gradually over a period of years to avoid disruptions to the housing market. 


Also Notable:

  • Weekly Jobless Claims fell to the lowest level since July 2008
  • The Fed's Warsh will resign on March 31
  • The Bank of England made no change in rates
  • Egyptian President Mubarak will step down

 




Average 30 yr fixed rate:

Last week:

+0.20%

This week:

+0.05%

Stocks (weekly):

Dow:

12,250

+200

NASDAQ:

2,800

+50



Join the discussion

To post a comment on this blog post, you must be an HAR Account subscriber, or a member of HAR. If you are an HAR Account subscriber or a member of HAR, please click here to login. If you would like to create an HAR Account account, please click here.

Login to Comment
Disclaimer : The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the Houston Association of REALTORS®
eXp Realty LLC
One Riverway, Ste. 1700, Houston, TX 77056   Get Directions
Phone: (888) 519-7431
Fax: