Mortgage Rates Rise and Treasury Prices Fall.
On Tuesday, Treasury bond yields and Mortgage interest rates rose slightly as the bond selling resumes due to intense supply comes to market from Treasury borrowings to fund government. Bonds lose value as interest rates rise with inflation expectations. Though Stocks have fallen some, prices are still lofty! Nervous investors mull economic signals and the impact of the Tax cut on economic growth potential. The 10 Yr. Treasury Note stood at a yield of 2.8896% and the 30 Yr. U.S. Treasury Bond yielding 3.1530%. 30 Year Mortgages according to Freddie Mac were around 4.38% for conforming and 4.88% for Jumbo products.
ERATE employee warned families about Toxic Mortgages years before the mortgage meltdown. Bloomberg/Businessweek
June 9, 2005 - Keith M. Schemm, a mortgage broker in Santa Clara, CA, says option ARMS are "pretty dangerous loans to do" for many families. "The problem is there's such a frenzy in the marketplace to buy a home."
Too bad Fed Chairman, Alan Greenspan didn't sound the alarm about such mortgages. He should have consulted with Keith. (Keith Schemm NMLS ID: 336660)
Reach out to us at: 408-510-0621
30-year fixed-rate mortgage(FRM) averaged 3.86 percent with an average 0.5 point for the week ending August 24, 2017, down from last week when it averaged 3.89 percent. A year ago at this time, the 30-year FRM averaged 3.43 percent.
15-year FRM this week averaged 3.16 percent with an average 0.5 point, the same as last week. A year ago at this time, the 15-year FRM averaged 2.74 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.17 percent this week with an average 0.5 point, up from last week when it averaged 3.16 percent. A year ago at this time, the 5-year ARM averaged 2.75 percent.