Press Release: Fed Cut Leads to Rising Rates in Home Loan Market
PRESS RELEASE
For Immediate Release November 4, 2008
Today's Interest Rate: 30 year Fixed 6.5%
Weekly Change: + 0.25%
Fed Cut Leads to Rising Rates in Home Loan Market
As we forecasted last week, the Federal Reserve's ½ point rate cut resulted in higher rates on the benchmark 30-year-fixed mortgage. The home loan of choice for most American consumers climbed ¼ point last week to begin this week at 6.5% with 1.0 up-front charged by most lenders surveyed. While existing and new home sales were both up in the past week, mortgage rates continue to be a concern.
"This is a perfect example that should prove once and for all that Fed 'rate cuts' don't translate into lower mortgage interest rates," said Brian Bushlach of Integrity Capital Group and Host of KXL's Home and Wealth Show. "Most mortgage brokers are desperate for business and will try to spin a rate cut to their advantage. The fact is, lower short-term rates pump money into the economy, which causes inflation concerns in the long-term market. Investors increase their rates to hedge against that inflation."
Grim Job Report Looming Friday
Most economists now agree we're officially in a recession, and any holdouts will likely get a cold shower when Friday's job report hits the streets. Projections are calling for up to 200,000 jobs lost in October alone, which would push the yearly number to almost 1 million jobs lost. Unemployment is expected to creep up to 6.2%. The National Association of Business Economists predicts the US will be in recession throughout 2009.
About Brian Bushlach's Home and Wealth Show: Broadcasting to Oregon and SW Washington from Newsradio 750 KXL, Brian Bushlach's Home and Wealth Show ranks among the market's highest-rated weekend radio programs. Brian delivers the latest economic news impacting the real estate market, along with his insight, advice and opinions. Brian also welcomes a variety of experts, including Handyman Bob with "Hammer Time" and Jennifer Adams who offers her "Inside Advice" interior design segment. In addition, Brian hosts Northwest Vine Time with Joe Dobbes, heard Saturday's at 4pm on the Radio Northwest Network. Bushlach is the President of Integrity Capital Group, among the nation's premiere asset protection firms focused on advanced estate planning strategies and risk management for high net worth families, pro athletes, and charitable organizations. For more information, visit [http://www.homeandwealthshow.com].
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For Immediate Release November 4, 2008
Today's Interest Rate: 30 year Fixed 6.5%
Weekly Change: + 0.25%
Fed Cut Leads to Rising Rates in Home Loan Market
As we forecasted last week, the Federal Reserve's ½ point rate cut resulted in higher rates on the benchmark 30-year-fixed mortgage. The home loan of choice for most American consumers climbed ¼ point last week to begin this week at 6.5% with 1.0 up-front charged by most lenders surveyed. While existing and new home sales were both up in the past week, mortgage rates continue to be a concern.
"This is a perfect example that should prove once and for all that Fed 'rate cuts' don't translate into lower mortgage interest rates," said Brian Bushlach of Integrity Capital Group and Host of KXL's Home and Wealth Show. "Most mortgage brokers are desperate for business and will try to spin a rate cut to their advantage. The fact is, lower short-term rates pump money into the economy, which causes inflation concerns in the long-term market. Investors increase their rates to hedge against that inflation."
Grim Job Report Looming Friday
Most economists now agree we're officially in a recession, and any holdouts will likely get a cold shower when Friday's job report hits the streets. Projections are calling for up to 200,000 jobs lost in October alone, which would push the yearly number to almost 1 million jobs lost. Unemployment is expected to creep up to 6.2%. The National Association of Business Economists predicts the US will be in recession throughout 2009.
About Brian Bushlach's Home and Wealth Show: Broadcasting to Oregon and SW Washington from Newsradio 750 KXL, Brian Bushlach's Home and Wealth Show ranks among the market's highest-rated weekend radio programs. Brian delivers the latest economic news impacting the real estate market, along with his insight, advice and opinions. Brian also welcomes a variety of experts, including Handyman Bob with "Hammer Time" and Jennifer Adams who offers her "Inside Advice" interior design segment. In addition, Brian hosts Northwest Vine Time with Joe Dobbes, heard Saturday's at 4pm on the Radio Northwest Network. Bushlach is the President of Integrity Capital Group, among the nation's premiere asset protection firms focused on advanced estate planning strategies and risk management for high net worth families, pro athletes, and charitable organizations. For more information, visit [http://www.homeandwealthshow.com].
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