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At 5.21%, Freddie Mac 30 Year Fixed Rate Mortgage Jumps To Highest Since August
Yesterday we reported that the MBA announced the highest average 30 year FRM rate since August: a jump from 5.04% to 5.31%. Today this deterioration in mortgage rates was confirmed by Freddie Mac, whose 30 year Fixed Rate Mortgage jumped from 5.08% to 5.21%. Whether this is a function of the recent surge in 10 Year yields (subsequently ameliorated by Chinese purchases during yesterday's auction) or of the end of QE finally being felt is uncertain, although it is probably a combination of the two. This implies a loss in household net worth of billions of dollars in just one week. Of course, that is money that was already spent to bring you last month's fantastic retail store data, which was driven purely by everyone doing the moral hazard jingle, and refusing to pay for anything already purchased. Wholesale government justified theft is now a way of life in America, but it's cool - the banks on the hook for these billions in losses will keep getting back door bailouts in perpetuity.
Back to mortgages, which have already spiked by over 30 bps from their lows. And contrary to what some optimistic pundit would like you to believe, this will not end there, and is likely going to at least 6% if not much higher. From Bloomberg:
“There’s a big supply out there and a lot of the federal- type programs are kind of ending,” George Mokrzan, senior economist at Huntington National Bank in Columbus, Ohio, said before the data were released. “There are still weak markets out there.”
Mortgage rates for 30-year loans may rise to 6 percent -- a level not seen since November 2008 -- by the end of the year, Mokrzan said. A stronger economy and increased job creation may offset the negative effect on housing demand as consumers become more confident about making large purchases, he said.
The Greek default coming any day now to a daylight soap opera channel close to you will likely not do much good for mortgages.
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Well, since nobody will actually be making their payments, does it really matter what the rate is - 5.21, 7, 15, or 20%?
Good point. It's all now a total f**king charade. And it continues until it brings the entire (economy, government & social order) rotten structure down. "Down" as in "total collapse".
45+ years of steep cultural decline and some people are shocked at the consequences.
I just read on Crazy Karl's site tht 17% of mortgages in Florida are 90+ days delinquent on their mortgage. Yes, s-e-v-e-n-t-e-e-n percent of mortgages are 90 days late. IIRC, 90% of mortgages 90 + days late never "cure." That makes it approximately 15% of mortgages are heading for foreclosure.
Before the ARMs adjust.
This is a charade. What does it matter what your rates are if you are NOT paying them?
the important thing is there is no inflation i mean if there were inflation can you imagine what a complete horror show this would be?
At least wages are going down
Costco results this morning
Comparable sales for the gasoline business were very strong, benefiting from the year-over-year price inflation of gasoline. Average sale price per gallon was up 40% compared to last year at $2.73 a gallon this year compared to $1.94 a gallon last year, as gasoline inflation positively impacted total company reported comp sales by a little less than 3% and positively impacted U.S. reported comp sales by a little more than 3%.
Jeez, I get more worried for the USA by the day
I don't understand why the Treasury just doesn't put a government ATM in everyones home so that they can get access to all this free money. It would solve so many problems. LMAO
It would be more efficient to mail out stimulus debit cards. (Actually I think this was considered once.)
Nothing to see here people... move along, buy an ipad... market going higher.
While mortgage rates had risen to their highest level, mostly going along for the ride with 10 year Treasuries and Swaps, the level reached seems to have been attractive to investors, since yesterday benchmark Fannie 4.5 MBS had their best single day gain since July 31, 2009. The Freddie Mac data always comes with a lag...
There is no such thing as "moral hazard" when there is no morality to begin with.
At this point I am seriously considering a small first morgage to buy more pm's.
I dont think I would loose in the long run.
...the banks on the hook for these billions in losses will keep getting back door bailouts in perpetuity.
Don't be too hard on them, no-one in d.c. or on wall street has ever done an honest day's work so they are merely disadvantaged retards when it comes to the real world and are thus in need extra help.
everyone should just quit their job, refuse to pay ANY taxes
and grow some food to let this thing collapse like it should
I'm sick of this shite, but heh most people are happy with the system as long as they get an Ipad.
Pathetic!
This is a really good idea. I think it will come to this either way.