Tag Archives: mortgage bond

Obama’s Refinancing Plan Causes Mortgage Bonds To Fall In Value

President Obama’s plan will make it easy for homeowners who are underwater on their mortgage to refinance into a low-interest mortgage. This is pushing down the value of mortgage-backed securities and increasing pressure for a rise in mortgage interest rates, … Continue reading

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Federal Reserve Move Shocks Mortgage Market

U.S. mortgage bond rates are at record lows following a Federal Reserve decision to swap out its purchases of short-term mortgage bonds for long-term bonds. This will raise the price of bonds and reduce their yields, leading to lower mortgage … Continue reading

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No Major Tumble For Financial Markets

We’re still waiting for Democrats and Republicans to come to an agreement to extend the debt ceiling. So far, the markets are not panicking. There’s been no explosion in the interest rates paid out by bonds. Mortgage interest rates held … Continue reading

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How Do You Refinance A Mortgage On An Underwater Home?

Why would any bank refinance a mortgage on an underwater home? It makes no sense. But Senator Barbara Boxer has found a Republican to cosponsor legislation to do just that. Economist Mark Zandi supports the proposal. Banks are going to … Continue reading

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Mortgage Bond Slump Hurts Housing Market

A month ago, the Federal Reserve announced it was buying $600 billion worth of bonds. This created a furor. It became a political issue. And it discouraged people from buying bonds unless yields were raised. Mortgage interest rates are now … Continue reading

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Fannie/Freddie’s Conflicting Roles

From MarketWatch: Fannie and Freddie were taken over by the U.S. government in early September, in the first of several bailouts the government has launched recently to try to halt the spread of the mortgage-fueled credit crisis. Regulators initially restricted … Continue reading

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Falling Mortgage Bond Spreads

The stock market had a massive day. Bloomberg reports: March 18 (Bloomberg) — Yields on agency mortgage-backed securities tumbled to the lowest in more than a month relative to U.S. Treasuries amid speculation that capital constraints may be eased at … Continue reading

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$1 Trillion Needed For U.S. Mortgage Market

Bloomberg reports that the size of the U.S. home-mortgage market is $11 trillion. That market needs $1 trillion in new investment to stop the decline in home equity prices according to analysts at Friedman, Billings, Ramsey & Co. “There is … Continue reading

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