Mortgage rates dip as taper fears subside

Mortgage Rates Cool Down to 4.37 Percent

PHOTO: Chairman of the Federal Reserve Ben Bernanke testifies before the House Financial Services Committee on Capitol Hill in Washington on July 17, 2013.

Sent! A link has been sent to your friend’s email address. 2 To find out more about Facebook commenting please read the Conversation Guidelines and FAQs Mortgage rates dip as taper fears subside Ben Mitchell, USA Today 12:25 p.m. EDT July 18, 2013 Rates on the 30-year mortgage fell from their two-year high to 4.37% after concerns over the Fed relaxing its bond buying program began to ebb.
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Bernanke sees need for backstop for mortgage market

home loans. To fill the role they have played in ensuring a flow of housing credit in good times and bad, the senators would create a government backstop that would kick in times of stress after private creditors had absorbed large losses. A separate draft bill unveiled by Republicans in the House would also Reverse Mortgage River Oaks wind down Fannie Mae and Freddie Mac, but it would put much sharper curbs on government guarantees. Bernanke said that if lawmakers created a system in which the government was offering guarantees, they should ensure that the government is appropriately compensated. He also said they should make sure that firms that are repackaging mortgages into securities for investors hold enough capital to avoid taxpayers getting stuck with losses.
Read the rest here: Bernanke sees need for backstop for mortgage market

Mortgage rates

“Rising asset prices are theoretically creating a wealth effect that will hopefully spill over into the real economy,” Leclerc said. “To keep this momentum going, assume easy money days are not over.” Before the Senate Banking Committee on Thursday, Bernanke said the Federal Reserve is watching mortgage rates and home affordability. “There’s still a significant part of the population that is having difficulty accessing mortgage credit,” Bernanke said. Frank Nothaft, Freddie Mac’s vice president and chief economist, said, “Indications of a slowing in the economic recovery also placed downward pressure on mortgage rates.” Nothaft pointed to consumer sentiment, which fell to a three-month low in July. On Monday, the Commerce Department reported retail sales in June grew by only 0.4 percent, half of the market consensus forecast.
Read the rest here: Mortgage Rates Cool Down to 4.37 Percent

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