{"id":8627,"date":"2009-05-28T09:35:38","date_gmt":"2009-05-28T16:35:38","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=8627"},"modified":"2009-05-28T09:35:38","modified_gmt":"2009-05-28T16:35:38","slug":"lower-june-2009-mortgage-rates-rely-on-central-bank-action","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8627\/lower-june-2009-mortgage-rates-rely-on-central-bank-action\/","title":{"rendered":"Lower June, 2009 Mortgage Rates Rely On Central Bank Action"},"content":{"rendered":"

May Day in the mortgage rates market is over.\u00a0 The market got spooked by triangulated opinions about the viability of the US Treasury as a going concern<\/a>.\u00a0 In response, mortgage traders sold off mortgage-backed securities, some 3-4%, in 4 days, to drive mortgage rates from 4.75%\u00a0 to the 5.375% current level.<\/p>\n

Tom Vanderwell thinks mortgage rates could bounce as high as 5.75%, in the next 30 days <\/a>unless there is MASSIVE intervention by the Fed.<\/p>\n

MOTIVE: <\/strong>It helps to understand that Ben Bernanke is a disciple of financial activism as a means to combat a potential economic depression<\/a>.\u00a0 Aware of his activist philosophy, scrutiny of the April, 2009 FOMC minutes<\/a> would lead you to believe that the Fed is targeting retail mortgage rates to be under 5%.\u00a0 Mortgage rates north of that number are counter-productive to the fiscal policy designed to deleverage the average American<\/a>.<\/p>\n

MEANS:<\/strong> The Fed has another $700 billion at the ready to stabilize the mortgage-backed securities market and artificially lower retail mortgage rates to under 5%.<\/p>\n

METHOD: <\/strong>The Fed would have you believe that not only are they going to purchase those MBS for the consumers but for the viability of the Central Bank<\/a> (this is spin, plain and simple).\u00a0 In short, the Fed is saying\u00a0 “the financial institutions are so healthy that we must direct our attention to the consumer if WE are to remain a going concern”.\u00a0 I’m exaggerating a tad but that’s the Fed “spin” to justify the massive intervention I expect.<\/p>\n

My opinion about the Fed’s actions are irrelevent to the near-term home buyer and mortgage shopper; my analysis is not<\/a>.\u00a0 Expect the Fed to drive mortgage rates lower into June.<\/p>\n","protected":false},"excerpt":{"rendered":"

May Day in the mortgage rates market is over.\u00a0 The market got spooked by triangulated opinions about the viability of the US Treasury as a going concern.\u00a0 In response, mortgage traders sold off mortgage-backed securities, some 3-4%, in 4 days, to drive mortgage rates from 4.75%\u00a0 to the 5.375% current level. Tom Vanderwell thinks mortgage […]<\/p>\n","protected":false},"author":15,"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],"tags":[],"class_list":{"0":"post-8627","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":3188,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3188\/mortgage-rates-higher-at-the-end-of-may\/","url_meta":{"origin":8627,"position":0},"title":"Mortgage Rates Higher at the End of May","author":"Brian Brady","date":"May 29, 2008","format":false,"excerpt":"Here's how bad it gets when the mortgage-backed securities market deteriorates: From May 21: This is a chart for the last 30 days for mortgage-backed securities.\u00a0 When MBS prices go up, mortgage rates come down.\u00a0 In this case, I noticed a meteoric rise in MBS prices in the last week\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":5913,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5913\/treasury-may-lower-mortgage-rates\/","url_meta":{"origin":8627,"position":1},"title":"Treasury\u00a0may lower mortgage rates?","author":"Tom Vanderwell","date":"December 3, 2008","format":false,"excerpt":"WASHINGTON (MarketWatch) - The Treasury Department is contemplating a proposal that would cut mortgage rates for new loans for homes, according to the Wall Street Journal. The plan would employ Fannie Mae to offer mortgages with rates as low as 4.5%, roughly 1% lower than current rates. The measure is\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":2529,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2529\/amaze-your-friends-why-the-surprise-fed-funds-rate-drop-isnt-impacting-mortgage-rates\/","url_meta":{"origin":8627,"position":2},"title":"Amaze Your Friends : Why The “Surprise” Fed Funds Rate Drop Isn’t Impacting Mortgage Rates","author":"Dan Green","date":"January 22, 2008","format":false,"excerpt":"Advanced Fiscal Literacy For Real Estate Professionals The Fed Funds Rate is a fair proxy for economic health.\u00a0 When the economy is growing, the FFR\u00a0rises to fight inflation. When the economy is slowing, the FFR\u00a0falls to fight \"the absence of inflation\" (i.e recession). If inflation is the enemy of 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":2796,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2796\/will-the-fed-buy-mortgage-backed-securities-in-the-open-market\/","url_meta":{"origin":8627,"position":3},"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":6014,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6014\/why-wont-mortgage-rates-drop-below-5\/","url_meta":{"origin":8627,"position":4},"title":"Why Won’t Mortgage Rates Drop Below 5% ?","author":"Brian Brady","date":"December 10, 2008","format":false,"excerpt":"Mortgage-backed securities have been on a tear, improving more than a half a point in the last week.\u00a0 This means that the 5.25% rate, offered at 1 point last Friday, should be offered at a half a point today....BUT.... ...that isn't the case at all.\u00a0 Mortgage rates may very well\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2663,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2663\/once-more-with-feeling-mortgage-rates-are-determined-by-mortgage-bonds-mbs-not-the-ten-year-t-note\/","url_meta":{"origin":8627,"position":5},"title":"Once More With Feeling- Mortgage Rates Are Determined by Mortgage Bonds (MBS), Not The Ten Year T-Note","author":"Brian Brady","date":"February 26, 2008","format":false,"excerpt":"Mortgage rates are volatile today...very volatile.\u00a0 There are two underlying factors contributing to the volatility: suspicion of the credit quality of the MBS market and supply\/demand imbalance (more people want money than is offered). Why am I so adamant about the fact that the ten-year treasury note is not the\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":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/8627","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=8627"}],"version-history":[{"count":7,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/8627\/revisions"}],"predecessor-version":[{"id":8635,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/8627\/revisions\/8635"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=8627"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=8627"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=8627"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}