Tag Archive for: yield curve

5 Fail-Safe Recession Indicators

Three pieces of news surfaced yesterday that should have pushed interest rates through the roof! 1) Inflation (CPI) came in much hotter than expected; 2)The Fed made comments about “rates needing to stay higher to ensure inflation is tamed;” and 3)An employment report (jobless claims) came in much stronger than expected. When I saw this news surface, I thought we’d see rates climb at least 1/4% yesterday, but instead they actually fell a bit.Read More

Rates Hit 23-Year High (I Hate It When That Happens)

Mortgage interest rates rose yesterday largely in response to the release of Fed Minutes – and they are now at levels not seen since 2000. Here are a few interesting […]Read More

Mortgage Rates Hit New High; Causes? When Does It End?

Why I Know High Rates Won’t Kill Us The average mortgage rate today is 7.20%, per the Mortgage News Daily, the highest rate we have seen since November of last year. I […]Read More

WHEN Will the Recession Come?

EVERYONE expected the entire country and much of the world to be mired in a horrible recession by now. And yet, we’re still growing. I blogged about the reasons why […]Read More

Rates Climb 1/2%! Will It Last? What’s Going On?

Rates have shot up almost 1/2 percent since late June – taking a particular beating over the last week (largely in response to strong employment data). We are back to […]Read More

Europe Raised Rates By 1/2%, and Rates FELL

The European Central Bank (ECB) raised its short-term rate (its equivalent to the Fed Funds Rate that the Fed raises here in the U.S.) by a full 1/2% yesterday. It shocked many observers because Europe is facing a banking crisis that is potentially much worse than what we face here in the U.S. (for reasons I won’t go into for brevity’s sake).Read More

The Fed Does NOT Control Interest Rates! Follow the Data Guys!

  The Fed raised “rates” last year at the fastest pace in history! There were 7 “rate” increases in total: 0.25% in March 0.50% in May 0.75% in June 0.75% […]Read More

Why ARM Rates Are So Close to 30-Year Rates

Apparently, in 2002, it was “Hot In Herre” – or at least it was according to Nelly. I, however, had no idea because I had never heard the song, and […]Read More

The “Yield Curve”; What It Is, and Why It Matters

After the 2008 meltdown, almost all of our borrowers insisted on only 30 year fixed rate mortgages b/c so many had heard horror stories about adjustable-rate mortgages, or ARMs. The […]Read More