Mortgage Weekly Update - Last Week in Review - Not much new
Foster Weeks publishes a weekly mortgage update which is updated every Monday morning....Foreign buyers who seek a safe, high rate of return on their money love our US Bonds – and their continued investment in our Bond market has helped keep Bond prices high, and therefore, home loan interest rates low. Based on the good result of the auctions, Bond prices and home loan rates improved throughout the week, but then lost some ground on Friday to end the week right back where they started.
So what happened Friday? First, some Traders saw prices as topping out, and decided to sell and take their profits. Additionally, there were several Fed officials on tour, including St. Louis Fed President William Poole. Poole mentioned increased defaults in home loans to risky borrowers, and said that rates may rise as a result. The talk of rising home loan rates was enough to spook Traders ahead of the weekend – and many decided to take even more chips off the table.
The Fed Chairman himself was on the speaking circuit, and an interesting comment Mr. Bernanke made had to do with the increasing differential between earnings of a four year college grad, vs. a high school grad with no college experience. A college graduate made 75% more than their high school graduate counterparts last year – a trend that has been increasing for many years...
- Foster Weeks
posted by SFResidence.com @ 7:31 AM
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