Thursday, March 30, 2006

Mortgage Rates Moving Up

The bond market had been cooperating nicely the past few days if you are a real estate bear. The yield on the 10 year treasury has moved above 4.8%, which should result in higher mortgage rates by next week. The higher yields seem to be due to the new view that Fed Chairman Bernake is not an inflation dove and that he will continue to raise rates even if it means tanking the housing market. Also helping matters is the strength of the economies of other countries, in particular Japan. The general idea is that interest rates will continue to rise in the US as long as the Japanese economy continues to improve. Very simply, as the economy in Japan improves, interest rates there go higher and more money is invested in Japanese bonds. In order to keep too much money from flowing to Japan, US interest rates have to move higher in order to compete with the higher Japanese rates.

5 Comments:

Anonymous Anonymous said...

OMG! The celebrated RUMSOM HOUSE just sold for MORE than asking!!!

































APRIL FOOLS!

It's still languishing. Heh.

Saturday, April 01, 2006 8:00:00 PM  
Blogger Real Estate Expert said...

Already starting to get ready for another hurricane season in Florida. Starts in June. Not sure how it will effect my real estate work. Tough business right now. So I enjoy taking a break and seeing what other people are up to. Enjoyed visiting your blog. Visit my site if you have a chance.

Friday, April 14, 2006 6:26:00 AM  
Blogger Boca Expert said...

Guess I have to get back to my my real estate work. Enough blogging for now. I did enjoy reading your blog. Visit my site if you have a chance.

Tuesday, April 18, 2006 10:55:00 AM  
Anonymous Anonymous said...

If I spent as much time working on my own real estate sites as I do slogging thru blogging, I'd probably make more money. But I enjoy a good read. Thanks for the break. Stop by my site if you can.

Monday, April 24, 2006 7:55:00 AM  
Anonymous Anonymous said...

Blogging does not always widen my mental spectrum, which I need to do as a break from my own real estate work. We need more colorful blogs. Thanks for the read. Visit my site if you have a chance.

Friday, April 28, 2006 9:04:00 AM  

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