Mortgage rates rose this week, with the average 30-year fixed mortgage rate rising to 5.45%. The average 15-year fixed rate mortgage climbed to 4.86% and the average jumbo 30-year fixed rate is back up to 6.60%. This comes after weeks of stable rates and represents their highest point since early February.
According to Bankrate.com, the potential General Motors bankruptcy and a week of substantial government borrowing caused the rates to rise. Yields on benchmark Treasury yields increased as a glut of new supply hit the market, and the prospect of a significant corporate bankruptcy further agitated would-be bond investors.
While mortgage rates …read more

One of the more positive results of the current recession — at least from a personal finance standpoint — is the new emphasis on personal savings.

Today a three-month U.S. T-bill offers a return of 0.03 percent.  With such a measly return, why are people flocking to them? 

It’s pretty simple: positive 0.03 percent is better than negative anything.
Someone asked me why the rate is so low and wouldn’t it be less trouble to tuck the money away somewhere safe at home.  Here are some reasons why the rates are low and why a T-bill may be worth the trouble:
1.  Treasury rates will always be relatively low. Risk and return are directly related and since the U.S. government is believed to be one of the safest borrowers on the planet, you …read more

Everytime I turn on the television, someone is talking about the stock market.  Granted, I do watch an abnormal amount of CNBC, but even the regular stations are becoming saturated with financial market lingo. 
I watched about a half hour of Saturday Night Live this past weekend and there were two MacGruber skits making references to the stock market’s recent decline.  Here’s the link for MacGruber: Financial Ruin.   
I like stocks (well, at least talking about them) but it is time for people to stop watching and waiting on them for a definitive sign that the economy has changed its course.  Start paying attention to the bond …read more