Mortgage Rates and Treasury Yields Fall.
On Wednesday, Treasury bond yields and Mortgage interest rates fell as the bond market is forced to contemplate the effects on the economy 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 2.914% and the 30-Yr. U.S. Treasury Bond yielded 3.150%. The 30-Year Mortgages according to Freddie Mac were around 4.75% for conforming and 5.19% 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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