Marc's Mortgage Matter's

The FBI now says that 80% of the crime in the U.S. is being carried out by ruthless gangs... But enough about Citigroup, Bank of America and Goldman Sachs.

When a community builds a concrete pier into the ocean, eventually the tides prove stronger, and unless it is maintained, the pier is eventually taken under by the tides. Is this happening with the Fed trying to artificially spot mortgage rates, in the face of market forces? Ever since the magical 4.5% mortgage was “targeted”, rates have moved up, and we now find ourselves at 6%.

No one is arguing that the economy is weak, so what is holding rates up? Increased borrowing by the federal government to fund stimulus packages has helped drive underlying Treasury yields, and to some extent mortgage rates, higher. And no one knows what will happen when the music stops, i.e., when the Fed stops buying MBS’s (mortgage backed securities), yikes!

Yup I know what you're thinking. Many neighborhood banks and lenders are offering 5% or lower deals 'n all. I've tried them myself, most are not approving the loan(s) in the end of the day, and most borrowers end up paying higher rates for a zillion various excuses.