Archive for Ben Bernanke
Bernanke: Economy “Far From Being Out of the Woods”
Posted by: | CommentsPosted To: MND NewsWire
The Chairman of the Federal Reserve, Ben Bernanke, today gave a speech titled Economic Challenges: Past, Present, and Future The first half of Bernanke's prepared speech revisited the events that led us into the great recession. Ben then reviewed and justified the innovative actions that had to be taken by the Federal Reserve to save the banking system.Overall, nothing new was offered in this portion of the statement, but later on he did provide some insight about the road ahead. Here are a few excerpts and my comments… On Housing: "We have yet to see evidence of a sustained recovery in the housing market. Mortgage delinquencies for both subprime and prime loans continue to rise as do foreclosures. The commercial real estate sector remains troubled, which is a concern for communities…(read more)
Mortgage Rates Led Higher By Another Surge in Benchmark Yields
Posted by: | CommentsPosted To: Mortgage Rate Watch
Mortgage rates took a beating yesterday as market participants sold their fixed income investments. This drove Treasury yields higher and MBS prices lower. The benchmark 10 year treasury note rose from a yield of 3.66 to 3.85 and the Fannie Mae 4.5 MBS coupon lost 100 basis points in price. Losses started early and continued throughout the day all the way into the close. All lenders repriced for the worse multiple times which increased the par 30 year fixed mortgage rate from the l ows of the year all the way to the highs of the year , proving that rates rise much faster than they fall. The only economic data released this morning was the weekly Jobless Claims report. This data provides three measures on the health of the labor market: 1. Initial Jobless Claims : totals the number of Americans…(read more)
Mortgage Rates Move Lower. Most Aggressive Lender Pricing Seen in Weeks
Posted by: | CommentsPosted To: Mortgage Rate Watch
Mortgage rates rallied lower yesterday after the Federal Reserve reiterated they intend to keep the Fed Funds rate at at exceptionally low levels for an “extended period”. The Fed also held steady in their belief that inflation is not posing a threat to economic stability. In regard to the MBS Purchase Program, although the door for some sort of extension or reopening is not completely closed, the Fed is still widely expected to finish the program at the end of March READ MORE . Following the release of the statement, benchmark Treasury yields declined and prices of mortgage backed securities moved higher. This allowed most lenders to reprice for the better, lowering consumer borrowing costs by a few basis points . Still, the price improvements were not enough to push the par 30…(read more)