Frank Nothaft Quotes (212 Quotes)

Renewed concern over the threat of inflation pushed up long-term mortgage rates, while the most recent Fed statement caused short-term rates to float upwards,

Although mortgage rates rose this week, they are still about one percent lower than they were at this time last year, which has led to the current frenzy of refinancing.

Long-term bond yields dropped leading up to Federal Reserve Chairman Greenspan's testimony to Congress over speculation of what he may say about deflation and over the possibility of the Federal Reserve buying long-term Treasury bonds to fight it,

Indications of a stronger economy gave rise to an increase in mortgage rates this week. Consumer confidence and existing home sales unexpectedly rose. Much of this strength is attributed to a healthy labor market, which translates into greater consumer spending. This should support an active housing market over the next few months.

As a matter of fact, it looks as though 1998 will register the lowest annual mortgage rates in 30 years.

Mortgage rates continued to set records. Interest rates remain the lowest in Freddie Mac history indeed, they are the lowest we have seen since 1967.

The Federal Reserve's recent cut in interest rates and a continued concern over weakness in the overall economy contributed to another drop in mortgage rates this week. In spite of the slowdown in other sectors and a lessening of consumer confidence, declining mortgage rates since the first of the year have helped to support housing activity,

Freddie Mac economists expect mortgage rates will fluctuate for the rest of the year, but shouldn't rise over six percent. And compared to last year's average of 6.5 percent, today's rates are still incredibly affordable.

Today ARMS account for about 30 percent of new loans. We forecast that share to fall to around 25 percent by the end of 2006.

The political and economic uncertainty of war in Iraq is wearing on the confidence of consumers and restraining business expansion. And that, in turn, translates into a weaker economy which places downward pressure on interest and mortgage rates.

Corporate accounting concerns caused fierce investor buying of U.S. Treasury bonds, thereby lowering their yields. Other long-term interest rates followed suit in bringing fixed-rate mortgage rates within a slim margin of their 30-year record low set last November.

The recent increase in mortgage rates has given the housing market a slight breather from the frantic pace in lending that has been prevalent over the last few years.

However, many other indicators remain strong and this we think will lead the Federal Open Market Committee to raise short-term rates another quarter point to a target of 2-14 percent, putting upward pressure on frequently adjusting ARMs.

I can't see how we can maintain double-digit house price growth nationwide like we have enjoyed.

As a matter of fact, low mortgage rates in August led to housing starts in that month that were the second highest in over two decades.

The Consumer Price Index released this week showed no decline, suggesting that the possibility of deflation is still low. Housing starts were stronger than expected, as were the leading indicators released today. All of these reports together could indicate the economy is ready to pick up growth.

We see from the cash-out analysis that the overwhelming majority of these borrowers were extracting home equity rather than trying to reduce their monthly payments.

There's about 6 trillion in single-family mortgage debt outstanding, and total home value is about 13 trillion, which means there's about 7 trillion in home equity outstanding. Last year was a big year for liquefying home equity -- about 100 billion. That's a drop in the bucket compared to 7 trillion.

Financial markets see inflation as being well managed by the Fed, and that allows long-term interest rates to remain low, with mortgage rates even falling a little more this week.

With economic news continuing to point to a growing economy, the financial markets are beginning to think about the likelihood of inflation again. Not only that, but jobs creation, retail sales, and consumer prices jumped in March which buoyed market speculation that the Federal Reserve Board will raise rates sooner than expected. Add all that to the mix and mortgage rates were bound to rise this week.

Recently released employment figures point solidly towards a slowdown in economic growth. That, in turn, alleviated upward pressure on interest rates, allowing mortgage rates to slip a little more.

Plummeting consumer confidence in September led markets to believe that the lack of job growth is wearing on the economy,

In 2001, homeownership rose to an all-time record of 67.8 percent of the population, fueled by low mortgage rates. Last year, mortgage rates were low and stable, averaging 6.97 percent. And this year, forecasts are for much of the same.

As a matter of fact, housing directly contributed to real GDP growth of 19 percent in the first quarter of the year and 23 percent in the second quarter. To put this in perspective, this would compare to 17 percent of real GDP growth over all of 2004.

Worry about disinflation should now be tempered somewhat, but fear of inflation is still unwarranted. And that should keep mortgage rates from rising too quickly or steeply anytime in the near future.

Interest rates in general have been oscillating with every piece of economic news released lately,

Growing evidence that the economic growth rate is throttling back to sustainable levels is the main reason why mortgage rates softened this past week.

Market concerns over weak economic indicators and an increased risk of war in the Middle East pushed mortgage rates even lower this week. That and falling stock prices raised investors' appeal for U.S. Treasury bonds, which in turn allowed most interest rates to drift even lower.

Housing continued to help fuel the economy this year, accounting for about 20 percent of real GDP growth in the first quarter alone. Further, since the end of March long-term bond yields have fallen by more than a half of a percentage point, allowing interest rates on fixed-rate mortgage to decline as well. Consequently, both new and existing home sales in April reached all-time record highs.

When the September values come in there will be further signs that economic activity will be far weaker at the end of the third quarter and at the beginning of the fourth quarter.

Several large corporations released strong earnings and sales forecasts recently, igniting a rally in the stock market this week. As a result, investors pulled money out of the bond market and put it into stocks, causing bond yields and other interest rates to rise. Mortgage rates followed suit, to a lesser degree.

The most recent economic indicators ... showed that inflation is, indeed, being held in check. That news allowed long-term mortgage rates to drift a little lower.

If Friday's Producer Price Index results and next week's Consumer Price Index results confirm that inflation remains under control, then we may even see mortgage rates go a little lower.

The escalating tensions within the U.N. over the impending resolution on Iraq and dismal economic news this week sent the stock market tumbling and with it went bond and mortgage rates. The high volatility is likely to remain for a while. But since there are no upward pressures at the moment, any sustained rise in rates in highly unlikely.

With mortgage rates low and consumer confidence high, Freddie Mac economists expect the housing market to remain strong in the months ahead.

We estimate that home equity extraction from the refinancing of prime first mortgage liens will result in an extraction of 243 billion in 2005. However, equity extraction in 2006 will likely fall sharply, by a little more than half to about 117 billion, as we expect lower refinance activity and slower house-price appreciation.

Additionally, applications for home purchase were the highest ever recorded last week, according to the Mortgage Bankers Association, which also reported that refinancing activity reached almost 50 percent of applications over the same period. The housing industry continues to amaze us.

Saving half a percentage point in interest accumulates over time.

Presently, all eyes are focused on next week's meeting of the FOMC Federal Open Market Committee. What the Fed decides and what it says at that time will surely have an impact on the future direction of mortgage rates,

There is a slight chance the Federal Reserve Board will raise rates when it meets later this month, but with the current labor market and slowing consumer spending, it is more likely that it will take no action until August at the earliest. As a result, short-term interest rates, such as the one-year adjustable-rate mortgage, drifted further down this week.

The Fed rate cut and Greenspan's recent remarks that the economy has hit a 'soft spot' had a huge impact on financial markets, ... Combined with the anticipation that the U. S. could soon be at war with Iraq, market sentiment turned toward the negative, driving mortgage rates to new lows again.

In advance of what is hoped will be a strong jobs report tomorrow, bond yields rose this week and, predictably, so did mortgage rates,

As mortgage rates drift upward, we expect to see some moderation in housing activity.

It was no great surprise that housing starts rose for the second time in three months since mortgage rates in November reached levels not seen since the mid-1960s. Since mortgage rates are not expected to increase significantly, we remain confident that the housing industry will continue to be alive and active well into 2003.

Earlier in the week, interest rates were a bit higher, as financial markets were a little anxious about what language the Federal Reserve (Fed) would use in its statement this month.

Although inching upwards, the average 30-year fixed-rate mortgage rate for the month of July was lower than the annual averages since our survey began in 1971.

There was no news this week that would drive mortgage rates in one direction or the other. Therefore, mortgage rates didn't have much reason to move a lot, staying below 7 percent for the second week running.

Of late, there has been no compelling economic reason to believe mortgage rates would climb out of their recent range.

Anticipation that the Federal Reserve may well cut rates at its next meeting, combined with further weakness in certain sectors of the economy, caused interest rates to fall again.

Just when we were sure mortgage rates couldn't possibly drop any lower, we were surprised yet again, ... Current issues such as the possibility of military actions abroad, heightened terrorism alerts, and an unexpected drop in consumer confidence contributed to the decline in mortgage rates this week.