fed: When the Fed Cuts, What Happens To Mortgage Rates? - 10/28/08 10:57 PM
Visit our daily blog at www.wealthwithmortgage.com! Let me save you some time and money. The Fed does not control mortgage rates.  Not at all.  The Fed can do many things to influence the economy, but one of those things they control is NOT mortgage rates.  Influence, yes.  Control, no.
Let me explain.
What Does The Fed Control? Now that I’ve established the Fed doesn’t control mortgage rates, it’s important to realize what the Fed does control.
Fed Funds Rate - This is the rate that banks are charged directly from the Fed for overnight funds. (More at Wikipeida). Discount Rate - … (3 comments)

fed: The Fed Decides To Extend The Discount Window Terms - 08/11/08 09:52 PM
The Fed announced today (Wednesday, July 30th) that they will be extending their discount window terms.
They will be increasing the now 28 days repay loans to 84 days for banking institutions.  The first auction offering these terms is on August 11th.
Just another sign that the goverment is willing to do what it takes to releave as much stress on the financial system as possible!
More found on MarketWatch.com!

(0 comments)

fed: Rate Moving Economic Reports for the Week of April 7th - 04/08/08 08:40 AM
**Click Here To See The Original Post on WealthWithMortgage.com!**
It's important to recognize that advice is extremely valuable when seeking advice on a mortgage.  The right advice can literally save you thousands of dollars, while the wrong advice can cost you the same.  I'm talking on this subject because too often when we're asking the wrong questions when shopping around.
I'll be the first person to tell potential clients to do their homework on potential lenders.  The important thing to consider is the types of questions you should be asking when shopping around.  Here are some questions to consider asking when shopping for … (0 comments)

fed: Emergency Fed Fund Cut of 3/4% - 02/03/08 02:06 PM
**Click Here To See The Original Post at WealthWithMortgage.com**
Big news this morning!  The Fed announced a 3/4% CUT to the Fed Funds Rate reducing it to 3.5%.  The discount rate was also reduced .75% to 4%.  I personally suspect this was a move the react to the global stock-market sell off.   Look at the numbers across the world overnight:
Honk Kong was down 8.7% Australia was down over 7% Japan was down 5.7% Trading was HALTED in India after it fell 10% at open.Do you think the US was worried about a huge sell off?  Of course it was!  I think this … (3 comments)

fed: Countrywide Sells to Bank of America - 01/17/08 11:03 AM
**Click Here to See the Original Post on wealthwithmortgage.com**
The rumors are true.  Early this morning an official announcement was made that Bank of America will be purchasing Countrywide for $4 Billion.  Reactions are mixed, but most are saying this is very good for Countrywide stock holders and a good buy for Bank of America.
As I'm sure you've heard, Countrywide has been struggling in the past year.  Mortgage delinquencies are hurting their bottom line and they have struggled to keep the liquidity to stay in the game.  Bank of America stepped in August 22, 2007 and put $2 billion into Countrywide to … (1 comments)

fed: What The Fed Didn't Tell You On Tuesday - 12/31/07 02:16 PM
Ok - It's now old news that the Fed decided to cut the fed funds rate (FFR) on Tuesday a .25%.   Yes, the stock market was disappointed.  Mortgage bonds didn't do anything phenomenal on the news because it was also less of a cut than they expected.  The important and should I say 'Sexy News' was the Fed's announcement this morning that they will be auctioning $20 Billion on December 17th to the highest bidder.  Yes, that's a pretty big deal.  The Fed has decided to step in and make a statement that they aren't going to let this liquidity issue … (0 comments)

fed: December 11th Fed Meeting : Will They Cut? - 12/31/07 02:09 PM
In case you've been living under a rock for the past couple weeks, let me be the first to inform you that there is a Fed Meeting tomorrow.  Many spectators are expecting a cut.  The important concern I must address is how this decision effects mortgage rates.
Ok.. Here is the quick and dirty - The Fed only controls the Fed Funds Rate and the Discount Rate (click to read more).  The Fed DOES NOT control mortgage rates, this is often a misconception.  Mortgage rates are based on mortgage back bonds, also known as mortgage backed securities.  These bonds are issued by … (2 comments)

 

Tyler Osby

Urbandale, IA

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