Free Republic

Summary Due to high government spending and a series of hot inflation reports, Treasury yields are near 20-year highs, with implications for housing, autos, banks, tech, and the stock market. The potential for much higher yields is supported by theoretical, practical, and historical reasons. We could easily reach 6% for 10-year Treasury yields, 9% for mortgages, and 8% for car loans in 2024. Since late October, large-cap U.S. stocks have seen a furious 25% rally based on the idea that the Fed will soon pivot and dramatically cut interest rates. The move in stocks has been driven almost entirely by...

Homebuyers are feeling whiplashed by surging mortgage rates, and the outlook just turned grim. The average rate on the 30-year mortgage increased to 7.37% on Thursday, a steep climb from 7.11% at the beginning of the week, according to Mortgage News Daily. The quarter-point increase comes as rattled investors respond to a hotter-than-expected inflation reading. At the same time, a separate measure tracking weekly average rates rose to 6.88%, up from 6.82% the week prior, Freddie Mac found. Elevated rates have left would-be buyers in a pinch, causing both repeat and first-time buyers to step away from any purchase plans....

U.S. mortgage rates dropped below 7 percent for the first time since August, according to new data released Thursday by Freddie Mac. Mortgage rates have been falling steadily for the past seven weeks as inflation has eased, and the latest dip follows signs from the Fed on Wednesday that interest rates could come down next year. “Given inflation continues to decelerate and the Federal Reserve Board’s current expectations that they will lower the federal funds target rate next year, we likely will see a gradual thawing of the housing market in the new year,” said Sam Khater, Freddie Mac’s chief...

Biden’s magic trick was to turn the economy into a train wreck. Example? The 30-year mortgage rate was 2.88% on Biden’s inauguration day (January 20, 2021). They are now 7.32%, a 154% increase under Biden. ... The US economy is suffering from knucklehead energy policies, reckless Federal spending and rampant inflation. Joe Biden doing economic magic tricks, turning a vibrant economy into an inflation-ravaged one.

Redfin projects mortgage rates may not fall until early to mid-2023 ... Red-hot mortgage rates are giving home buyers and sellers cold feet. About 17% of homes that went under contract with real estate brokerage Redfin last month were called off. The technology-powered real estate firm reported that approximately 60,000 deals fell through in September, marking the "highest share on record aside from March 2020," the same month the World Health Organization declared the coronavirus pandemic. Redfin Economics Research Lead Chen Zhao said the housing market is at "another standstill" although it's completely different from the early days of the...

While rising treasury yields may be music to the ears of savers who have been crushed by low interest rates over the past 7 years, they're a bit of downer for the overwhelming majority of Americans that have been funding their lavish lifestyles with cheap debt. Yes, sadly the days of upgrading to the $65,000 luxury car despite a $40,000 annual salary, because you can "afford it" so long as you can cover the low monthly payments courtesy of 7-year terms and low interest rates, may finally be coming to an end. But auto OEM's aren't the only ones about...

Would-be home sellers across the country are grappling with a once-in-a-lifetime problem: They have mortgage rates so absurdly low it would hurt them financially to sell. Doing so would mean giving up an irresistible rate in exchange for a new mortgage carrying a rate up to a percentage point higher. Their monthly payments would be larger even for a house of the same price. That’s discouraging some people from selling, thereby limiting the supply of available homes and contributing to slower home sales. …

As 2014 arrived, experts were confident that the 30-year mortgage rate would rise to at least 5% this year as the Federal Reserve cut back a bond-buying program, which had depressed the rates to unheard-of lows in 2013.. So much for the experts. The Fed has reduced purchases to $20 billion a month in mortgage bonds, down from $40 billion when the program began in September 2012. Yet lenders this week were offering 30-year fixed home loans at an average of 4.2%, the lowest rate in six months, according to home finance giant Freddie Mac. ... Freddie Mac chief economist...

For three decades, the U.S. middle class enjoyed a rare financial advantage over the wealthy: lower mortgage rates. Now, even that perk is fading away. Most ordinary homebuyers are paying the same or higher rates than the fortunate few who can afford much more. Rates for a conventional 30-year fixed mortgage are averaging 4.48 percent, according to Bankrate. For “jumbo” mortgages—those above $417,000 in much of the country—the average is 4.47 percent. …

Thank you so much in advance for any guidance/recommendations you may have. My daughter bought a house in Denver and is looking for loan - will put 20% down and finance $390k. Recently had a "bait and switch" on locked in rates. Anyone have recent positive experience?

According to the Mortgage Bankers Association, mortgage applications rose slightly from the previous week. Mortgage applications increased 0.2 percent from one week earlier. mbastats080713 The seasonally adjusted Purchase Index increased 0.73% percent from one week earlier. mbapurcch080713 Even as the MBA’s 30 year effective rate rose from 4.69% to 4.73%. mbsputsh30r The average purchase loan size actually rose slightly from the previous week, although down overall since May 1st. mbval30er Here is a chart of the LPS house price index compared to mortgage purchase applications. lpsmortpga The Refinance Index was unchanged from the previous week. mbarefim30er The refinance share of...

I was on Fox Business with Connell McShane and Dagen McDowell talking about the low homeownership rates for Millenials. I mentioned that mortgage rates are expected to rise, hindering a housing recovery. On that note, Kate Berry at American Banker wrote today about the shrinking of mortgage units at lenders. “Wells Fargo (WFC) and Citigroup (NYSE:C) are laying off hundreds of employees at their mortgage units, one of the most tangible signs yet of the falloff in refinancings and the painful shift underway in the mortgage market.” In the latest Mortgage Bankers survey, mortgage purchase applications remain in a rut...

According to Freddie Mac, mortgage rates in the U.S. fell to a record for a third straight week. The average rate for a 30-year fixed loan dropped to 3.79 percent in the week ended today from 3.83 percent. Fannie Mae 30 year current coupons (the rate on Fannie Mae MBS) fell as well, but not to the lowest point in recent months.\ As Europe continues to experience a financial crisis, investors continue to invest in our Treasury market (driving down yields). 30 year mortgage rates follow the 10 year Treasury yield. Greece, Portugal and Spain continue to experience problems with...

The average rate on the 30-year fixed mortgage this week fell below 4 percent for the first time ever, to 3.94 percent. For those who can qualify, it's an extraordinary opportunity to buy or refinance. And mortgage rates could fall even further now that the Federal Reserve plans to reshuffle its portfolio of securities to try and lower long-term rates. On Thursday, Freddie Mac said the average rate on a 30-year fixed mortgage dropped from 4.01 percent last week, the previous low. The average rate on a 15-year fixed loan, a popular refinancing option, dipped to 3.26 percent, also a...

Long-term mortgage rates fell to the lowest levels since Freddie Mac began keeping track this week. Freddie Mac’s (NYSE: FRE) weekly rate report says a 30-year fixed-rate mortgage averaged 4.69 percent in the week ending June 24, down from 4.75 percent last week. A year ago, 30-year mortgages averaged 5.42 percent. The average rate on a 15-year fixed rate mortgage fell to 4.13 percent this week, the lowest in at least two decades. A one-year adjustable-rate mortgage averaged 3.77 percent, down from 3.82 percent last week. While low mortgage rates remain a stimulus for housing sales, the loss of the...

WASHINGTON – Mortgage rates fell this week to the lowest level on record, giving consumers added incentive to lock in low payments on home purchases and refinancings. Mortgage company Freddie Mac said Thursday that the average rate for 30-year fixed loans sank to 4.69 percent, from 4.75 percent last week. That's the lowest since Freddie Mac began tracking rates in 1971. The previous record of 4.71 percent was set in December. Rates for 15-year and five-year mortgages also hit lows. Mortgage rates have fallen over the past two months. Investors wary of the European debt crisis and the turbulent stock...

A day after the Senate passed its version of a sweeping financial overhaul bill, the banking industry fired a warning shot at Washington -- and anyone looking to buy a house -- that rules restricting banks' use of derivatives may crimp an already vulnerable housing recovery. Strongly hinting that average Joes could become collateral damage as a result of Congress' hard-line approach to regulating banks, Wall Street warned that the cost of home ownership could surge as a result of rules that prevent banks from using a form of derivatives called swaps, which help banks hedge against interest-rate risk and...

WASHINGTON (AP) - The era of record-low mortgage rates is over. The average rate on a 30-year loan has jumped from about 5 percent to more than 5.3 percent in just the past week. As mortgages get more expensive, more would-be homeowners are priced out of the market—a threat to the fragile recovery in the housing market. And if you wanted to refinance at a super-low rate, you may have missed your chance. Mortgages under 4 percent are still available, but only for loans that reset in five or seven years, probably to higher rates. Rates are going up because...

SAN FRANCISCO (MarketWatch) -- The Treasury Department may float a plan to reduce mortgage rates on new mortgages to boost the housing market, The Wall Street Journal reported late Wednesday on its Web site,

WASHINGTON (AP) - Mortgage rates around the country fell this week, with rates on 30-year mortgages dipping to the second lowest level of the year, pushed down by further signs of economic weakness. Mortgage giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages averaged 6.11 percent, down from 6.14 percent last week. It marked the fourth straight weekly decline in rates. The only time rates have been lower this year was the week of Jan. 19 when the 30-year mortgage dipped to 6.10 percent. All categories of mortgage rates surveyed by Freddie Mac declined this week. Rates on 15-year, fixed-rate...