Mortgage rates tick back up a bit this week. I was expecting a slight drop in rates due to the 10Y yield falling. However, it seems that in the past 2 days the yield did recover, and I’m sure with margins so thin, lenders can’t afford to give back gains.
Mortgage Rates for Single-Family Homes
On the mortgage activity front, applications decline again. However, the decline was largely due to another significant drop in refinancing activity.
U.S. mortgage applications fell for a third straight week, dragged down by a decline in home refinancings to a 16-month low even as interest rates dipped, an industry trade group figures showed on Wednesday.
Mortgage applications decrease: MBA
The group’s seasonally adjusted index of refinancing applications dropped 6.3 percent to 1,484.3 compared with 1,584.1 in the previous week. The index fell for a sixth straight week, and volume was at its lowest level since the week ended June 25, 2004 when the index reached 1,386.9.
The purchase index however, did increase a bit.
The MBA’s seasonally adjusted purchase mortgage index rose 0.8 percent to 476.2 from the previous week’s 472.3. The index is considered a timely gauge on U.S. home sales.
I can tell you something else. I am shopping around my pile of money to put in a highyielding cd instead of ING. Wouldn’t you know the 1 years over the last 2 weeks have been inching up. FYI all matress stufers or holders of fdic limit, endangered accounts CD’s will probably go up even further. On another blog (bubble Bursting?)there was a statement that the next fed meeting will see a 50 basis point rise instead of 25 or zero. The latest housing #’s are the reason.
BTW Flushing Savings (Iknow it sounds funny. Like what you would be doing buying a house right now.) has a 5% apy 12 month CD, just FYI
Yet another BTW, I am involved in the GOV side of development and in NW jersey there has been a noticable slump in Subdivision Apps. It is usually an indicator of where the developers really see thing going.
The Big squeeze is on. Higher short term rates squeezing the moroons who signed up for monthly debt slavery.
It’s all a ponzi. An economy built on monthly payments. Ever see a company with flat or delcining cashflow with big debt serviing cost. Meltdown.
I’m holding most of my money in laddered 3 month CDs right now (through various lenders). Actually, a local NJ bank, Hudson City Savings Bank, has a promo going, a 4mo 4% CD, not bad for a local bank (non internet).
Looking at the bankrate.com CD rate calculator, the online banks have some very nice looking short term CDs, Indymac has got 4.26% on a 3mo..
I use HCSB. Love this bank. I keep a high yeld checking acct (3.05 IR) to save money in and roll eveything above the minimum balance (20k) into 4 month CDs (Currently 3.92 IR / 4 APR)every 4 months. Their internet banking is free and pretty complete for checking your accounts as well (Sorry about the pun).
One of their branches is also very conveniently close to me. Initially I chose this bank because of its higher yeild interest than most banks (They were giving 0.99 to everyone else’s .5) and its proximity. I learned that HCSB gave some of the best yeilds in NJ for a branch bank soon after and stuck with them for everything. Their mortgage rates aren’t bad either..
FYI, Emigrant Direct has 4% APY with no minimums.
Just about every piece of economic news today, Q3 GDP, Chain Deflator, Chicago PMI, and Fed Beige Book point to further rate increases down the pike.
3 more rate hikes look as likely as ever now.
grim, i also had my money in ING until it became clear they wanted to lag the highest APY for MMA’s. my guess is they had enough deposits to satisfy them. EmgirantDirect is the best option at 4%. they also tend to react very quickly to changes in the fed funds rate.
Finally… Now I feel good about having money in my savings account. For the past 2 years I couldn’t even buy a cup of coffee for the interest that my money earned.
Well, we’ll see if others were swayed by higher savings rates a little later this morning. Personal Spending, Income, and Savings data to be released at 8:30. The savings rate has been negative for a few months now, not a positive trend at all. For those that don’t understand the concept, it means Americans are not saving a penny, but are instead, dipping into their savings to cover expenses every month.
I am still tangled in the ING Direct web :) but you are right, it looks like they made the decision to delay following the FedFunds increases.
Is Emigrant’s user interface as friendly as ING’s? How long does it take for a transfer to clear?
I have an INg account and I;m way over FDIC limit there so I was looking at other accounts. I just opened an account with Emigrant direct, but I’m thinking of opening one with HSBC Direct and closing the Emigrant Direct bank. The 2 interest rates are almost identical, but HSBC is a much larger, more prestiguous bank. Plus, I think they allow you to use their ATMs.
Northern New Jersey Real Estate Bubble Here is my two cents.
We have been looking for a house all summer in Bergen County. We put on offer in early May on house in Westwood for 505k; the asking price was 595k it was rejected right away as insulting (I got the guts to do it at the heat of the insane market). The house was sitting for three months. Then the seller reduced the price to 570K, I made couple of offers as a mini bidding war started and ended up making a final offer of 565k. I lost the bid to another buyer who got it for 569k. I feel extremely lucky now.
Two months ago we were back looking again ( as my wife kept nagging me as she was brainwashed by her friends), this time we made an offer on a house in River Edge for 555K, it was listed for 580k ( after reduction of 20k as it stated at 600k) our offer was accepted right away. My realer told me that the seller had an offer in early summer for 570k but the buyer could not get a mortgage so the seller had to put it back on market for 580k as the market conditions changed. To make the long story short, we had cold feet and backed off from our offer. I feel lucky for a second time around. The house is still sitting; the seller reduced his price for another 20k and had two open houses since. Also, at the same market area at least 6 houses which were on the market in the same price range of 500 to 575k were withdrawn.
Next time I may give some examples with MLS#.
First time heard Emigrant Direct here. Their APY is so attractive. Are they good? How is the service? Thanks.
I am on the fence about that. I need to think about it.Need to finish my report on adjustable rate mortgage wisconsin.Stop by,adjustable rate mortgage wisconsin.
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