Mortgage Rates and Treasury Yields Fall.
On Monday, Treasury bond yields and Mortgage interest rates fell for the eighth straight day as the bond market is forced to contemplate the effects of a higher Federal Funds rate in the next year. The U.S. 10-Year Note may be about to break out above the psychologically important 3.00% yield level. Though Stocks have fallen some, prices are still lofty just a couple of percent off all-time-highs in indexes. Nervous investors mull economic signals and the impact of the Tax cut on future growth potential & the aging economic recovery. The 10-Yr. Treasury Note stood at a yield of 3.069% and the 30-Yr. U.S. Treasury Bond yielded 3.322%. The 30-Year Mortgages according to Freddie Mac were around 4.94% for conforming and 5.25% 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)
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