Mcadams Financial Services

Fixed rates experienced a mild bounce-back down .375pt this morning on news that Janet Yellen, the heir-apparent to Bernanke, feels that the Fed still has bullets in their gun. She has hinted in her testimony to Congress that she will continue QE3 until the economy gains traction. Good Luck! This economy will gain no velocity until we figure out what to do with the unemployed. In the meantime, the money flooding the banking system will continue to go into the Stock Market creating no jobs. http://maloneysmortgagenews.com

The market continues to sell off treasury bonds putting pressure on Fixed and Adjustable Rate mortgages today. Fixed rates will be .25-5pt higher in fee today and the Best Execution average rate on a 30 Yr. Fixed at zero points has crept up to 4.25-4.375%. http://maloneysmortgagenews.com

Fixed rates will be .125-.25pt lower in fee today following a big move up last week. Best execution 30 Yr. Fixed at zero pts. will average 4.25-4.375% today. In other mortgage news, it has become clear that Real Estate activity slowed way down following the ill-advised attempt by the Fed to ‘taper’ QE3. Good luck to the new Fed Chief on that one. http://maloneysmortgagenews.com

For no apparent reason, Fixed Rates will be .5pt higher in fee today than yesterday. This is a big one day move and follows a recent rally in rates. What gives? Fear of QE3 tapering is the only answer. Fundamentals are still the same: 18+ million unemployed, weak dollar, slowing sales, and deflationary pressures. Maybe the past few weeks have been Trick not Treat?... http://maloneysmortgagenews.com

Fixed rates are doing well today. I don’t usually do this, but I found a very good article on CNN or MSN or somewhere that addressed the conundrum known as Quantitative Easing: Most of the money created by the Fed is gathering dust in bank reserves and has not been making its way out to Main Street. Since the Fed launched its latest bond-buying program in September 2012, bank reserves have increased by about $800 billion, whereas the currency circulating in the economy has ...increased by only $80 billion. Meanwhile, repeated rounds of quantitative easing have fueled stock gains to the point where some economists say prices may no longer be reasonable. MAKE NO MISTAKE ABOUT IT, THIS AND JOBS ARE THE TWO MOST PRESSING ECONOMIC ISSUES OF OUR LIFETIME. THE FED HAS PROBABLY PAINTED ITSELF INTO A CORNER AND BANKING SYSTEM IS HORDING CASH AND NOT MAKING REASONABLE LOANS TO SMALL BUSINESSES AND OTHER BORROWERS WHO WOULD OTHERWISE QUALIFY. Very distressing http://maloneysmortgagenews.com