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Ryan Baker’s Mortgage Blog

What is happening to mortgage rates with all that is going on with the economy and the bailout situation? Last week we saw rates drop, but this week we saw them rise. I found a pretty good article that explains it. Click Here

The basic recap of the article from is this:
To fund the rescue and the new government guarantees, Treasury must sell a raft of new Treasury bills to raise money. “Who even has the cash to buy them all?” said Keith Gumbinger. “The Treasury has to offer higher interest rates to sell.”Mortgage rates tend to move in conjunction with Treasurys. But mortgage rates are higher than Treasury yields, because when mortgages are securitized and sold to investors, they’re a riskier proposition than government bonds.

I looked at rates again today and they were up across the board. Most conforming rates were in the 6% range, with 30 year at 6.5%. These rates are still way better than a lot of the problem loan rates that people currently have, and historically they are VERY low. As some of you remember, in the late 90s rates were at 8-9% and people were just fine. Heck, we used to have average mortgage rates as high as 15% only 25 years ago. The strict credit guidelines should start to ease up pretty soon as well. Heck, one thing this whole situation has taught us is that a lot of people (including myself) live beyond their means, but this is not news. I know this may seem obvious and redundant but unless you have NO other options, don’t stop paying your mortgage and credit cards. I know it sounds crazy, but some people are just giving up for one reason or another. Maybe they figure if their credit is already bad what is the difference. Credit can bounce back quicker than you think. The worst thing you can do is stop paying your mortgage. If you need any credit advice, feel free to contact me and I can try and help you, and if I can’t, I can point you to someone who can.

One thing that I’ve also learned is history repeats itself, and this kind of “economic crisis” has happened before, and we’ve recovered every time. To be honest, the one thing that I can see that is causing most of the problems is panic/fear. Once the panic is over, everything will recover. It may not be exactly like it used to, but we’ll survive. Without trying to get too political, and no matter which party wins the election, mark my words…things will begin to recover very soon after they take office. Not over night, but the new president knows he will be immediately judged based on how he manages the situation and I predict he will not fail.

Thanks for reading my blog aka rant. I can be reached at

Written by Keith Byrd - Go to Keith's Website/Profile