Mortgage Rates and Treasury Yields Rise.
On Thursday, Treasury bond yields and Mortgage interest rates rose as bond investors remove yield curve flattening strategies and see duration risk as a potential problem and interest rate risk being repriced as the push for wage increases for workers is debated in Congress as the over-arching motive for Tax Plan reform legislation. Nervous investors mull economic signals and the impact of the Tax cut on economic growth potential. Bond investors are looking at the possibility of lower-for-longer policy as an incentive to buy bonds. Treasury Note stood at a yield of 2.3753% and the 30 Yr. U.S. Treasury Bond is yielding 2.8268%. 30 Year Mortgages according to Freddie Mac were around 3.95% for conforming and 3.74% 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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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.