Many people believe that interest rates are simply set by lenders, but the reality is that mortgage rates are largely determined by what is known as the Secondary Market. The secondary market is comprised of investors who buy the loans made by banks, brokers, lenders, etc. and then either hold them for their earnings, or bundle them and sell them to other investors. When the secondary market … [Read more...]
Arizona Mortgage Rates: Look For Lower – Then Higher
Yesterday, the Fed announced that they would buy up to $1.2 Trillion worth of mortgage backed securities and long term treasuries - which should result in lower rates in the short term. I also expect it to result in higher rates in the longer term (possibly much higher) as inflation kicks in - although the smartest guys in the room don't seem to think that inflation poses that big of a … [Read more...]
Arizona Mortgage Rates: The Trend Is Your Friend
Some time ago, I was a student in an advanced capital markets finance class in college. I seem to have forgotten many of the things I learned in that class (or at least "learned" enough to pass the test!) but one thing has stuck with me through the years. "Don't fight the trend. The trend is your friend." Today, it was announced that the Federal Reserve was committing $800 billion to … [Read more...]
Phoenix Arizona Mortgage Rates October 15, 2008
Arizona Mortgage Rates for October 15, 2008 Rates have moved up significantly in the last week. As we have mentioned before, trying to predict interest rates is tricky and we prefer not to try to be "rate predictors". The only advice that we can give during this period of uncertainty in the markets is that if you are currently in the process of applying for a mortgage loan, lock as … [Read more...]