Tag Archives: interest rates

Deflation Is Now Major Concern

Popular Economics Weekly We wrote recently about the Eurozone in danger of becoming Japan, which has suffered through some 2 decades of a deflationary spiral, before Prime Minister Abe opened the stimulus spigots. Why is deflation (or disinflation, which is … Continue reading

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Employment Up, Interest Rates Falling Again

Popular Economics Weekly We are still in the Goldilocks economy—it’s not too hot or too cold. In fact, there is enough geopolitical unrest (now it’s the Hong Kong youth protests against China’s hardliners) to drive down interest rates, and boost … Continue reading

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Pending-Home Sales Decline Slightly

The Mortgage Corner The Pending Home Sales Index, a forward-looking indicator based on contract signings, fell 1.0 percent to 104.7 in August from 105.8 in July, and is now 2.2 percent below August 2013 (107.1). Despite the slight decline, the … Continue reading

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Consumer Confidence In A ‘Goldilocks’ Economy

Popular Economics Weekly Once upon a time, the U.S. was considered to have a “Goldilocks” economy that was neither too hot nor too cold; where inflation was moderate, yet there was full employment. This last happened in the late 1990s … Continue reading

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Why Such Low Interest Rates?

The Mortgage Corner Fixed 30-year conforming interest rates have once again dropped slightly below 4 percent for a 1 pt. origination fee in California, after being as high as 4.50 percent earlier this year. Why the drop when most economic … Continue reading

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Will Housing Now Lead the Recovery?

The Mortgage Corner There is still hope that housing may help this economic recovery, as it has in past recoveries. But that is only if Fed Chairman Janet Yellen succeeds in keeping interest rates—mortgage rates in particular—at their current low, … Continue reading

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Where Is Housing Affordable Anymore?

Financial FAQs How much salary do you need in order to afford the principal and interest payments on a median-priced home in your metro area? To find out, HSH.com, a mortgage data service, took the National Association of Realtors’ first-quarter … Continue reading

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New Fannie, Freddie Regulator Won’t Cut Loan Limits

The Mortgage Corner WASHINGTON (MarketWatch) — This headline just out.  Mortgage-finance giants Fannie Mae and Freddie Mac won’t be directed to lower the limits for mortgages that they back, the new head of their federal regulator said Tuesday. In a … Continue reading

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Why Low Interest Rates Are Here to Stay

Financial FAQs Some have called it a Putin bond rally. Or it might be new Fed Chairperson Yellen’s determination to keep interest rates as low as possible, until economic prosperity returns to Main Street. It might as well be because … Continue reading

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Yellen’s Federal Reserve To Keep Rates Low

The Mortgage Corner The Fed’s FOMC minutes of their last meeting were just released, and they show the Fed intends to keep interest rates low for as long as possible, until the unemployment rate drops substantially. And the Fed’s maintenance … Continue reading

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