Mortgage rates remained unchanged for the second consecutive week, as a troublesome reading on consumer prices neutralized growing optimism over falling oil prices.

Though the Consumer Price Index (CPI) measures a period which trails the recent declines in oil prices, the latest reading was a reminder of how difficult it can be to put inflation back in the bottle once it escapes. 

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What’s striking about recent mortgage news is how much of it is dominated by stories about investigations and indictments related to mortgage scams. Federal authorities have announced a nationwide crackdown, and local authorities have been active in many communities as well.

There were other, less dramatic stories on the mortgage front:

• Mortgage application activity stalled as mortgage rates rose
• The Hope Now Alliance, a mortgage industry group, announced plans to help streamline work-out plans for troubled borrowers
• A long-awaited mortgage bill became bogged down in the Senate due to controversy stemming from favorable mortgage rates received by two Senators

These other stories are worth reviewing, but ultimatly they are best put in context by the crackdown on mortgage scams.

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The second part of the discussion on the U.S. subprime mortgage meltdown by 60 Minutes Correspondent Steve Kroft.

For more on this see:
60 Minutes: House Of Cards - Part I
[CBS 60 Minutes] House Of Cards: The Mortgage Mess
House Of Cards: The Mortgage Mess
60 Minutes: House of Cards

60 Minutes Correspondent Steve Kroft reports on the U.S. subprime mortgage meltdown and how it affects capital markets worldwide.

For more on this see:
[CBS 60 Minutes] House Of Cards: The Mortgage Mess
House Of Cards: The Mortgage Mess
60 Minutes: House of Cards

With all of the recent news regarding the Fed cutting rate, the Fed’s anticipated rate cut on March 18th, 2008 and some rates going up, it may be difficult to keep track of which rate we are all taking about. The Fed and the economic headlines often use the word “rate” to refer to a variety of interest rates that help steer the economy and provide liquidity to the credit market.

In most cases, whenever one uses the word “rate” and the Fed in a single sentence, they are usually referring to the Federal Funds Rate. Read the rest of this entry »