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North Korea agreed to shutter its main source of plutonium today in exchange for energy and food considerations after months of negotiations with the United States and other countries. The agreement did not specifically address the disarmament of existing nuclear weapons.

News like this is a mixed bag for mortgage rate shoppers based on how [...]

Despite the dearth of economic news last week, mortgage rates staged somewhat of a rally. By the time the week ended. mortgage rates had retreated by half of the prior week’s major run-up. The week was not without fireworks, however. In prepared remarks, Dallas Fed President Fisher dropped a hint about future [...]

As the week closes today, three Federal Reserve Presidents are set to deliver speeches.

The most well-known of the speakers is Dallas Fed President Richard Fisher. Fisher is known for speaking candidly and has produced a plethora of sound bites over the years.

Also scheduled to speak are Cleveland Fed President Sandra [...]

The Bank of England and the European Central Bank left their benchmark lending rates unchanged today. Both alluded, however, to the need for future rate increases and these policies can have a direct impact on domestic mortgage rates.

When strong governments issue debt (i.e. bonds), it is "guaranteed money" and, therefore, risk-free. When nations [...]

Last week, the Federal Open Market Committee held the Fed Funds Rate at its current level and indicated that the economy is expanding at an acceptable pace. This morning, however, a Federal Reserve Bank President delivered a public speech to the contrary.

In prepared remarks to the local Chamber of Commerce, Philadelphia Federal Reserve Bank [...]

Home equity is created in one of two ways (assuming increasing home value and a non-negatively amortizing first mortgage).

In the first method of creating equity, the homeowner pays down the principal balance on the mortgage. This increases the difference between what is owed on the home and what the home is worth.

In the second [...]

Last week was not for the weak-hearted as mortgage rates bounced around like a fumbled Super Bowl football. In a widely-expected move, the Federal Reserve held the Fed Funds Rate at 5.25% for the fifth consecutive meeting, stating that growth is "moderate" and that inflation pressures may be subsiding.

Consumer spending represents two-thirds of the [...]

This morning’s Non-Farm Payrolls report showed that 111,000 new jobs were created in January, short of Wall Street’s 155,000 expectations. The weaker-than-expected figure did not give mortgage markets a reason to rally, however, because December’s figures were revised higher by 39,000 and November’s by 42,000.

Traders have shrugged off the data for three major reasons:

Constant [...]

The FOMC left the Fed Funds Rate at 5.250% yesterday, signaling controlled growth in the months ahead. Most notable was the press release’s inclusion of "tentative signs of stabilization" with respect to the housing market and the removal of references to high energy prices.

Because the FFR did not change, the FFR-derived Prime Rate also [...]