PFBlog logo

My Personal Finance Journey

Personal finance observation, musing and decisions in a journey toward financial independence by 36 with at least $1 million.

  Home | Feed: feed-icon.gif | About | Progress: June 07: $756,924 | Best of PFBlog | Product Reviews | PFBlog Digest | Disclaimer | Advertise | Contact Me

...

Low Mortgage Rates Defy Expectations





Very unusual ... the yield curve will be almost flat if Fed keeps raising Fed rate. Many people are certainly playing with fire now, and the outcome does not look promising.

From Washington Post:

Mortgage rates are largely determined by the yield on the 10-year Treasury note. Last June, when the Fed's benchmark short-term rate was 1 percent, the 10-year yield was 4.69 percent and the average 30-year mortgage rate was 6.25 percent.

Since then, Fed officials have raised their benchmark federal funds rate, which is charged on overnight loans between banks, to 3 percent and indicated they plan to move it higher to keep inflation in check. But the 10-year yield has fallen below 4 percent, to 3.88 percent yesterday -- the lowest level since March of last year.

What do you think of this post? Be the first to share your opinions.

Enjoy the latest personal finance news and commentary at PFBlog Network.
Similar Posts

Booming Local Housing Markets Weigh Heavily on Overall Sector (June 20, 2005)
It might be true that the bust will not be as dramatic as the stock market correction, but it will be at least as painful.
What Happens If Real Estate Goes Bust (June 14, 2005)
No conclusion offered but if the bubble is bursted, the consequenes will be ugly.
Some Homeowners Delay Sale In Hopes Of Higher Profit (May 31, 2005)
Well said, this is "bubble mentality."
Wanna Buy This House? Send Your Rsum (May 30, 2005)
All these mean the housing market is not only hot, but red hot. I firmly believe we are in the bubble, but it is very hard to call the top. In my hometown Shanghai, people would wait in the queue for two straight days just ...

Read all 27 articles in the same category.

Read More ... All Other Posts In The Same Category

PREMIUM SPONSORS

Car Loans
Dallas Bankruptcy Attorney
Personal Loans
Car Finance
Homeowner Loans
Cheap Car Insurance
Mortgages UK & CCJ Mortgage
Used Cars
Loans
Commercial Mortgages and Business Loans
Guaranteed Car Finance
Payday Loan
Personal Loan
Student Loan Consolidation.com
Secured Loans
Bad Credit Loans - Free Quote