Mortgage Articles

Thursday, July 20, 2006

Ben Bernanke's remarks in the senate today created an easy feeling among bond traders and reversed the recent increase in mortgage rates to some extent.

This came about as the Chairman of the Federal Reserve Board suggested that there are signs of easing inflation down the road, giving the impressing that the Fed may very well increase the Fed Funds rate in August but not in September.

It is worth noting that the 30 year mortgage rates are closely reflective of the 10 year bond yield.

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Wednesday, July 19, 2006
Mortgage rates have been declining for two weeks now! The average 30 year fixed rate has dropped by two basis points and the average 15 year fixed by almost 7 basis points.

This was a chain reaction triggered by the weaker than expected employment figures that were published last week, signaling a weakening economy an fueling a flight to quality, in the that investors started shifting money into the bond market pushing the price of bonds higher and the rates lower.

The fed has been trying to curb an overheated economy by raising the fed funds rates that have so far had little effect on the mortgage rates; however the housing market did slow down with the rising home values and the uncertainty about the future of the economy.

Home affordability is down not because of the mortgage interest rates but mostly because; despite the low rates buyers can not afford the payments.

Mortgage Calculators offered on this site can help you with all real estate purchase and refinance calculations.

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Refinancing mortgages is continuing, though at a much lower rate than last year. According to the Mortgage Bankers Association about a third of all mortgage applications are for refinance.

That may be inconsistent with the fact that the mortgage rates are on the rise, however there are still some good reasons to refinance a home mortgage.

Running up debt on credit cards and refinancing to pay it off may be a short term solution to a cash flow problem but not a very wise move if the borrower does not change his/her spending habits.

Another reason for refinancing is to move out of an adjustable rate mortgage loan or one of those 3/1, 5/1, or any other combination loans and fix the rate while there rates are still relatively low. Combining an equity line of credit with the first mortgage also can be helpful, as those lines of credit are normally based on the ever climbing prime rate.

Most borrowers find it difficult to figure out how a consolidation refinance will affect them. A Mortgage Consolidation tool found here can you in determining this with ease.
In fact, there are lots of other mortgage calculators listed on the home page of our site that can help you get in control of your financial future

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