Juicy Estates: Mortgage Blog

Archive for April, 2009

Chinese Gold Moving U.S. Mortgage Interest Rates

Larry Baer of Market Alert is in my opinion the most astute analyst when it comes to parsing global economic activity and it’s effects on mortgage interest rates.  Below is an excerpt from his daily commentary which concisely explains why Chinese investment in Gold may move U.S. mortgage interest rates higher over the next two weeks.

“I look for the upward pressure on mortgage interest rates to be a bit more intense during the coming week given this morning’s news of a sharp rise in Chinese gold reserves.  The big “so what” factor here is that swelling Chinese gold reserves probably represent a new strategy of diversification by China – which by extension could logically mean the Chinese will be buying relatively less in the form of  US Treasuries obligations in the future.  Granted the Fed currently has the financial firepower to take up some of the slack caused by the potential of reduced Treasury auction participation by the Chinese – but only for a limited amount of time.  You can be this event will be closely monitored for further developments by mortgage investors.  You can also bet mortgage investors will likely be very hesitant to push mortgage interest rates sharply lower until the Treasury auctions of the next two weeks are complete — and the participation levels of foreign investors can be clearly assessed.”

The week ahead is pack full of economic data and coupled with Larry’s analysis above should prove to be critical for those managing rates locks.

The Rise of The Regionals – Filling The Funding Gap

Recently during several speaking engagements I mentioned the niche that some small to mid-sized banks are filling in the residential mortgage market for Miami and South Florida.  The “distressed market” policies of some of the major lenders and larger banks including that of my employer are creating an environment where down payment requirements and/or underwriting guidelines are preventing some buyers from moving forward with their home purchase.  This is particularly true in the area of jumbo mortgages used for the purchase of a home with a sales price between $525,000 and $1,500,000.  

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Breaking Mortgage News In 30 Seconds!

If you are looking to buy or sell a home in the Miami area here are some important headlines that will put you out ahead of the crowd and keep you among the well informed.  

As we all know information is a valuable commodity but so is your time therefore this post contains just the facts with some links to relevant resources for those of you with a desire for a more in depth look at these topics.

 

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