Visual Guide to the Financial Crisis

Thanks to Mint.com for putting together one of the better visual guides to what caused the current economic downtown. It truly is interesting to see in a flow chart! (click on the image to make it larger)

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Visual Guide to the Financial Crisis

Thanks to Mint.com for putting together one of the better visual guides to what caused the current economic downtown. It is a very interesting flow chart look into all of the factors that made up the recession as well as visual guide to all of the results. It truly is interesting to see in a flow chart form! (click on the image to make it larger)

Fewer Families Relocated in 2008

RISMeadia states: Data from the U.S. Census Bureau indicates that only 12% of Americans changed residences in 2008 and 13% the prior year, down from over 20% mobility per year from the 1950s to the mid-1960s.

A poll by the Pew Research Center shows that 60% of Americans have moved one or more times. However, over 33% remain in their hometowns, and 57% have stayed in their state of origin. Of those characterized by Pew as “movers,” almost 40% say they are not living in their “heart home.”

Pew says Americans are not moving as often because two-career couples cannot easily find new jobs in another location, and an increase in the older population also has decreased mobility. The study indicates that “movers” tend to have college degrees and often cannot find a job in their hometowns.

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Fewer Families Relocated in 2008

RISMeadia states: Data from the U.S. Census Bureau indicates that only 12% of Americans changed residences in 2008 and 13% the prior year, down from over 20% mobility per year from the 1950s to the mid-1960s.

A poll by the Pew Research Center shows that 60% of Americans have moved one or more times. However, over 33% remain in their hometowns, and 57% have stayed in their state of origin. Of those characterized by Pew as “movers,” almost 40% say they are not living in their “heart home.”

Pew says Americans are not moving as often because two-career couples cannot easily find new jobs in another location, and an increase in the older population also has decreased mobility. The study indicates that “movers” tend to have college degrees and often cannot find a job in their hometowns. Fewer relocations seems reasonable to me and does not raise any alarm in my mind.

Mortgage Rates Drop to 37 Year Lows

mortgage rates drop to all time low

In response to the Federal Reserve’s cut in the federal funds rate to near zero, Freddie Mac reports that the 30-year fixed mortgage rate fell to 5.17% during the week ended December 18 – down from 5.47% the previous week and the lowest since 1971!

Interest on 15-year fixed loans slipped to 4.92% from 5.20%. Meanwhile, the five-year hybrid adjustable mortgage rate dropped to 5.60% from 5.82%; and the one-year ARM dipped to 4.94% from 5.09%. A year ago, the 30-year fixed rate stood at 6.14%, the 15-year fixed rate at 5.79%, the five-year hybrid ARM at 5.90%, and the one-year ARM at 5.52%.

This incredible drop in rates has kicked off what might be the largest refinance boom in the past 3 decades. We certainly expect borrowers to kick those adjustable rate mortgages to the curb in favor of the safer and more secure fixed rate mortgages.

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Mortgage Rates Drop to 37 Year Lows

mortgage rates drop to all time low

In response to the Federal Reserve’s cut in the federal funds rate to near zero, Freddie Mac reports that the 30-year fixed mortgage rate fell to 5.17% during the week ended December 18 – down from 5.47% the previous week and the lowest since 1971!

Interest on 15-year fixed loans slipped to 4.92% from 5.20%. Meanwhile, the five-year hybrid adjustable mortgage rate dropped to 5.60% from 5.82%; and the one-year ARM dipped to 4.94% from 5.09%. A year ago, the 30-year fixed rate stood at 6.14%, the 15-year fixed rate at 5.79%, the five-year hybrid ARM at 5.90%, and the one-year ARM at 5.52%.

This incredible drop in rates has kicked off what might be the largest refinance boom in the past 3 decades. We certainly expect borrowers to kick those adjustable rate mortgages to the curb in favor of the safer and more secure fixed rate mortgages.

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