Bernanke Talks

In the video below, Fed Chairman, Ben Bernanke discussed the current economic environment and shares some of his predictions for the future.  This video was presented on 60 Minutes last night.

Rising Stocks Take the Momentum Out of Mortgage Rates

Mortgage markets lost a little bit of ground last week, edging mortgage rates higher in a week marked by the largest stock market gains since November.

Once again, mortgage rates couldn’t sustain a rally of more than 5 days.  Not since late-2008 have mortgage rates managed to fall two weeks in a row.

The News That Moved the Market Last Week

Last week’s market was impacted by three particular factors:

1. Bank balance sheets weren’t as bad as feared
2. Discussion started on new bank valuation methods
3. Traders got optimistic that “the worst is over”

The rally will likely continue into this week, too.  This after the 60 Minutes interview with Ben Bernanke where the Fed Chief said he won’t let big banks fail and that the recovery will likely begin later this year.

Remember, this interview was a BIG deal.  It’s the first interview with a sitting Federal Reserve Chairman in history.

Specifically, What Did Those Reports Say?

Each week, I put up an economic calendar of news coming out that following week.   Here’s the what actually happened with those reports last week:

What Impacts Mortgage Rates?

If you’re looking to purchase or refinance a home, it’s important to know what moves mortgage rates.  There are normally two major things that impact the direction:

1. Economic News.  (Like the calendar above).
2. International News. (major events, pending legislation, war related news, etc).
3. Stock Market. (Money flows from equities (stocks) to bonds when it seeks shelter).

What Are Rates Based On?

It’s been mentioned before, but as a common reminder – mortgage rates are only based on one thing. Mortgage Backed Securities (MBS).  The only way you have access to these is through live bond quotes.

Looking For Mortgage Rates?

If you’re looking for specifically what mortgage rates are doing, I’d be happy to help with a custom rate quote.  Each scenario is different (there are 27 different factors a mortgage rate is determined by).  If you or someone you currently know are looking for a mortgage, I’m here to help!

Information without obligation.  That’s my policy.  If you like what you hear, my team and I would love to help you out with your mortgage!

Tagged as: mortgage market