{"id":5378,"date":"2008-11-01T10:23:56","date_gmt":"2008-11-01T17:23:56","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=5378"},"modified":"2008-11-01T10:23:56","modified_gmt":"2008-11-01T17:23:56","slug":"mortgage-market-week-in-review-14","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5378\/mortgage-market-week-in-review-14\/","title":{"rendered":"Mortgage Market Week in Review"},"content":{"rendered":"

<\/p>\n

I want to apologize for the delay in getting this out until Saturday.\u00a0\u00a0 Due to some technical difficulties and some new things I’m going to be implementing, Friday was spent working on computer issues.\u00a0\u00a0 Yeah, I know, a fun way to spend a Friday…..<\/span><\/p>\n

\n

So, here we are at the end of the week and what’s happened?\u00a0 Well, a couple of things did manage to happen.\u00a0 We’ll talk about the Fed, what they did, why it matters and why it doesn’t.\u00a0\u00a0 We’ll talk about earnings (or the lack of them), consumer spending (or the lack of it), inflation (or the lack of it), bailout backlash,\u00a0and falling oil prices as well.\u00a0\u00a0 So, here goes:<\/span><\/p>\n

\n

The Fed,<\/span><\/strong> as\u00a0 you know by now, lowered the Fed Funds rate by .5% to 1.0%.\u00a0\u00a0 A couple of statistics about that number:<\/span><\/p>\n

1. As you\u00a0 know, that isn’t directly linked to mortgage rates, so mortgage rates are not going to drop by .5% because of that move.<\/span><\/p>\n

2. That is equal to the lowest rate the Fed has had rates this century (from June of 2003 to June of 2004).\u00a0\u00a0 If you’ve read anything about what’s happening in the financial world, you’ll know that the former Fed Chairman Greenspan has taken a lot of heat for keeping interest rates too low for too long.\u00a0\u00a0\u00a0 Hmmm, and now we’re back to that same level.<\/span><\/p>\n

3.\u00a0 The rate they lowered to is 1.0%.\u00a0\u00a0 That means they have very little “ammo” left in their pouch if things deteriorate further. <\/span><\/p>\n

4. <\/span>Japan<\/span>, in the 1990’s, had an interest rate of 0%.\u00a0\u00a0 That’s right, banks etc. could borrow money from the Central Bank of <\/span>Japan<\/span> (their Federal Reserve) for nothing.\u00a0 How well did that work for <\/span>Japan<\/span>?\u00a0\u00a0 Short answer, not very well.<\/span><\/p>\n

\n

Why does what the Fed did matter? <\/span><\/strong><\/p>\n

1. Because in their statement, they essentially removed all mention of inflation being a risk.\u00a0\u00a0 For more details on what the Fed said, check out “The Fed Translated.”<\/a><\/span><\/p>\n

2. Because it showed that they are very concerned about the economic conditions not only in our country but elsewhere.<\/span><\/p>\n

3. Because it raises the question of whether we’re going to see a Read more<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

I want to apologize for the delay in getting this out until Saturday.\u00a0\u00a0 Due to some technical difficulties and some new things I’m going to be implementing, Friday was spent working on computer issues.\u00a0\u00a0 Yeah, I know, a fun way to spend a Friday….. So, here we are at the end of the week and […]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26,5],"tags":[261],"class_list":{"0":"post-5378","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","7":"category-real-estate","8":"tag-mortgage-market-week-in-review","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":3813,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3813\/mortgage-market-week-in-review-5\/","url_meta":{"origin":5378,"position":0},"title":"Mortgage Market Week in Review","author":"Tom Vanderwell","date":"August 8, 2008","format":false,"excerpt":"So, it\u2019s Friday again and what has this week been like for the mortgage world? Well, it\u2019s certainly not been boring, that\u2019s for sure! We\u2019re going to talk about six different things in today\u2019s Mortgage Market Week in Review: Freddie Mac - They started the week\u2019s major news by announcing\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2796,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2796\/will-the-fed-buy-mortgage-backed-securities-in-the-open-market\/","url_meta":{"origin":5378,"position":1},"title":"Will the Fed Buy Mortgage Backed Securities In the Open Market?","author":"Brian Brady","date":"March 18, 2008","format":false,"excerpt":"I never post my Mortgage Rates Reports here.\u00a0 They're boring unless you are thinking about buying a home or refinancing your mortgage.\u00a0 Today, it seems plausible that the Fed is shifting its open market activities from buying treasuries, to buying mortgage-backed securities, in order to bolster liquidity in the mortgage\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7526,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7526\/the-fed-translated-5\/","url_meta":{"origin":5378,"position":2},"title":"The Fed Translated…..","author":"Tom Vanderwell","date":"March 18, 2009","format":false,"excerpt":"Well, it's time to do a little Fed translating again.\u00a0\u00a0 This one was a big one, so settle in and let's translate it.\u00a0\u00a0\u00a0 As usual, my comments are in bold and italics.Release Date: March 18, 2009 For immediate release Information received since the Federal Open Market Committee met in January\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8979,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8979\/the-fed-translated-7\/","url_meta":{"origin":5378,"position":3},"title":"The Fed Translated…..","author":"Tom Vanderwell","date":"June 24, 2009","format":false,"excerpt":"In keeping with my practice of translating the Fed's statements, here goes this one:\"Move along, keep moving, nothing to see here folks!\u00a0\u00a0 Business as usual!\"They didn't do a thing to address the bond market concerns or to allow that things are changing at all.\u00a0\u00a0 Expect mortgage rates to drift up\u2026","rel":"","context":"In "Dirty Laundry"","block_context":{"text":"Dirty Laundry","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dirty-laundry\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4678,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4678\/mortgage-market-week-in-review-to-bail-or-not-to-bail\/","url_meta":{"origin":5378,"position":4},"title":"Mortgage Market Week in Review – to Bail or not to Bail?","author":"Tom Vanderwell","date":"September 26, 2008","format":false,"excerpt":"Yikes, every week it\u2019s getting more and more challenging to lay out for you what\u2019s going on in the markets.\u00a0\u00a0 Hopefully it will get easier, but I\u2019m not really sure that it will for a while.\u00a0 So what are we going to talk about this week?\u00a0\u00a0 This week it\u2019s about\u2026","rel":"","context":"In "Dirty Laundry"","block_context":{"text":"Dirty Laundry","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dirty-laundry\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14866,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/14866\/could-mortgage-rates-drop-after-a-treasuries-credit-ratings-downgrade\/","url_meta":{"origin":5378,"position":5},"title":"Could Mortgage Rates DROP after a Treasuries’ credit ratings downgrade?","author":"Brian Brady","date":"July 29, 2011","format":false,"excerpt":"The dictated debt limit deadline looms and a credit rating downgrade, to US Treasury securities and agency mortgage-backed securities, seems likely.\u00a0 Naturally, a spike in treasury yields is expected and a subsequent rise in mortgage rates should follow. \u00a0 That's right out of the senior year textbook, in most American\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big 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