Posted on 08/22/2013 2:17:10 PM PDT by whitedog57
Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates following bond yields higher, and reaching new highs for the year, with the expectant release of the Fed’s comments around taper timing of its bond purchase program.
30-year fixed-rate mortgage (FRM) averaged 4.58 percent with an average 0.8 point for the week ending August 22, 2013, up from last week when it averaged 4.40 percent. A year ago at this time, the 30-year FRM averaged 3.66 percent.
freddie30
Here is the Freddie rate against the 10 year Treasury yield.
freddie30t30y
Mortgage-backed securities have taken a beating since May 1st.
fannie3082213
MBS option-adjusted spreads?
mbsoas082213
Durations continue to increase with the rise in Treasury rates.
ginnie35dur
To quote Robert Preston from “The Music Man” … “Ya got trouble, right here in DC City. With a capital T, that rhymes with B and stands for .. Bernanke.
preston
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As a guy who signed a 13% mortgage back in 82, 4.5 doesn’t seem all that worrisome.....
I think the problem at hand is a 17 trillion flexible mortgage on a part time economy.
Learn THIS: HTML
Weak-assed unskilled pimp.
For sure.
What blows me away is that the markets continue to swallow this gusher of fake BaraqqiBucks.
Mortgage interest is tax deductible for those who itemize. Thus, the increase is not as bad as it seems. Not that 4.5% sounds all that bad.
“What blows me away is that the markets continue to swallow this gusher of fake BaraqqiBucks.”
Feeding 85 billion / month to the lie doesn’t hurt matter.
“Yes, we got trouble!”
You are right.
Commenters on this thread are not.
People write 4.5% “doesn’t sound that bad.”
Wrong.
Bank interest is ZERO to maybe if you are lucky 1.25%.
The difference between previous interest rates of 3.5% and now at 5% is:
(5 - 3.5) / 3.5 = 42% increase !!!!
How is a 42% increase in interest rates that THEY get “not bad” compared to the almost NOTHING that you now get for keeping money in the bank? It’s not “not bad” and if you really advocate that you are helping the criminals.
In fact, if you did that during a hurricaine, they would arrest you for “gouging.”
Times under “Jimmuh Catuh” were NOT normal — they were in fact disgusting times in which the “gummint” looted We the People, and no one should put up with those times, or with times today.
Freedom means the damn “gummint” keeps its criminal nose out of the Free Market. We don’t have the Freedom that rightfully under the law we are supposed to have, so no one, especially Freepers of all people, should be lying down and accepting of a situation in which We Americans are all illegally ROBBED every day.
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