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  • Sun, Jun 15 2014
  • 11:36 PM » Home, Food Or Health Care: A Choice Many Renters Can't Afford
    Published Sun, Jun 15 2014 11:36 PM by
    As of 2012, rentals made up 35 percent of American households. Their numbers are growing, but the demand isn't easing rental rates. Many renters now pay more than 50 percent of their income on rent.
  • 11:35 PM » Should More Consumers Be Selecting Adjustable Rate Mortgages (ARMs) Today?
    Published Sun, Jun 15 2014 11:35 PM by The Huffington Post
    The Mortgage Bankers Association reports that only about one of every ten home mortgages being written today carries an adjustable interest rate. A combination of negative press on ARMs and a widespread belief that interest rates are bound to start rising in the near future has induced extreme caution among borrowers -- as if the only proper response to risk is its complete avoidance. But risks are worth taking when the benefits are large, and the downside is known and manageable. This is the case for hybrid ARMs that have a fixed-rate period of some years at the beginning before annual rate adjustments kick in. My impression is that too many borrowers are taking FRMs as the easier path without considering whether an ARM might serve them better. The purpose of this article is to describe the factors that prospective borrowers ought to consider before making a decision on whether they want an FRM or an ARM. The Choices On June 9, well-qualified borrowers using my web site were offered the following choices: a 30-year fixed-rate mortgage at 4%, a 10/1 ARM at 3.5%, a 7/1 ARM at 3%, and a 5/1 ARM at 2.625%. (Fees and charges were about the same for all 4 and all have terms of 30 years). The initial payments on these loans are calculated using these rates. On a $300,000 loan, for example, the initial payments, in the same order starting with the FRM, were $1432, $1347, $1265, and $1205. The rate and payment on the FRM are fixed but on the ARMs they can change. How the ARMs Work The initial rate and payment on a 10/1 ARM holds for 10 years. At the end of the 10-year period, and then every year thereafter, the rate is adjusted to equal the value of the rate index at that time plus a margin of 2.75%. The index right now is 0.1%, which contributes to the view that rate increases are inevitable. At each rate adjustment, the payment is recalculated at the new rate over the period remaining. No rate change can exceed 2%, however, and the maximum rate cannot be more than 6% above...
    Click Here to Read the Full Article

    Source: The Huffington Post
  • 11:30 PM » Bond Market's Liquidity Threat Revealed in Derivatives Explosion - Bloomberg
    Published Sun, Jun 15 2014 11:30 PM by Bloomberg
    Bond Market's Liquidity Threat Revealed in Derivatives Explosion Bloomberg The boom in fixed-income derivatives trading is exposing a hidden risk in debt markets around the world: the inability of investors to buy and sell bonds. While futures trading of 10-year Treasuries is close to an all-time high, bond-market volume for some ...
  • 11:28 PM » Treasuries Rise as Fed Meeting, Iraq Tensions Drive Haven Demand - Bloomberg
    Published Sun, Jun 15 2014 11:28 PM by Bloomberg
    Treasuries Rise as Fed Meeting, Iraq Tensions Drive Haven Demand Bloomberg Treasuries rose, halting back-to-back weekly declines, as signs of subdued economic growth and a potential civil war in Iraq spurred demand for haven assets before the Federal Reserve meets this week. The Treasury yield curve was near its flattest in almost ... and more »
  • 11:27 PM » U.S. to sue Citigroup over faulty mortgage bonds – sources
    Published Sun, Jun 15 2014 11:27 PM by Reuters
    NEW YORK (Reuters) – The U.S. Department of Justice is preparing to sue Citigroup Inc C.N on charges that the bank defrauded investors on billions of dollars worth of mortgage securities in the run-up to the financial crisis, after talks to resolve the probe broke down, people familiar with the matter said on Friday. A […]
  • 11:26 PM » The Downside of Low Interest Rates: Reluctant Home Sellers
    Published Sun, Jun 15 2014 11:26 PM by WSJ
    Historically low interest rates likely will haunt the U.S. housing market by deterring homeowners from selling in future years after rates rise, housing economists say. Economists theorize that, in the so-called rate lockdown effect, homeowners that landed mortgages in recent years with rates 3.5% to 4% might be reluctant to sell their homes in the coming years, which would cause them to forfeit the rock-bottom rates on their existing mortgages. Rates for 30-year, fixed-rate mortgages, now at 4.2%, are widely forecast to reach 5% by next year.
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More From MND

Mortgage Rates:
  • 30 Yr FRM 4.67%
  • |
  • 15 Yr FRM 4.10%
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  • Jumbo 30 Year Fixed 4.70%
MBS Prices:
  • 30YR FNMA 4.5 104-00 (0-02)
  • |
  • 30YR FNMA 5.0 105-26 (0-02)
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  • 30YR FNMA 5.5 107-04 (-0-08)
Recent Housing Data:
  • Mortgage Apps -1.15%
  • |
  • Refinance Index -2.64%
  • |
  • Purchase Index 5.06%