Mortgage Rates

[unlawflcombatnt]

Below are graphs of 30-yr Mortgage rates from Bankrate.com over specified time periods (i.e., over 4 months, over 45 days, and over 1 year.)

4-month change in 30-year Mortgage Rate



45-day change in 30-year Mortgage Rate



1-year change in 30-year Mortgage Rate


These graphs can be made for any time period desired, by changing the number of days (in red)

for 1 year:
www.bankrate.com/usergraph/chart_img.aspx?tf=365&ct=&prods=1&gs=450,300&st=&c3d=False&bgcolor=&topgap=&bottom gap=&rightgap=&leftgap=&seriescolor=.png

for 3 months:
www.bankrate.com/usergraph/chart_img.aspx?tf=90&ct=&prods=1&gs=450,300&st=&c3d=False&bgcolor=&topgap=&bottom gap=&rightgap=&leftgap=&seriescolor=.png

Note:
The size of the graph can also be altered by adjusting the numbers highlighted in Orange

www.bankrate.com/usergraph/chart_img.aspx?tf=90&ct=&prods=1&gs=450,300&st=&c3d=False&bgcolor=&topgap=&bottom gap=&rightgap=&leftgap=&seriescolor=.png

www.bankrate.com/usergraph/chart_img.aspx?tf=90&ct=&prods=1&gs=250,200&st=&c3d=False&bgcolor=&topgap=&bottom gap=&rightgap=&leftgap=&seriescolor=.png

[unlawflcombatnt]

I thought it might be interesting to try to show graphically the effect of the Fannie-Freddie bailout on 30-yr mortgages, along with the 10-year Treasury. Below are graphs with time frames of 30-50 days, showing the 30yr Mortgage rate alone, and in comparison with the 10-yr. Treasury showing this:

[unlawflcombatnt]

I thought it might be informative to show a longer trend comparison of Mortgage rates for both California and the nation as a whole, and also in comparison to the 1-year Treasury.

<sup>3yr-California



3yr-National



3yr-National vs. 10yr Treasury</sup>


From the above, it is obvious that high mortgage rates are NOT killing the housing industry. They are less than they were during the June/July 2006 peak.

[jeffolie]

The Fed is widely believed to be willing to target mortgage rates so that they drop to 4.5% by monetizing the notes and bonds. It is far from clear and is in fact doubtful that this will stop the decline in housing prices. That being said, it is clear that lower mortgage rates will and do offer lower homeowner costs for those that are able to clear the considerable barriers and do refinancing. The predominant problem regarding those who do refinance from stimulating the economy is fear that things for them will get worse and so they save their money or pay down debt which is on an individual level a good, sound financial approach.