On our most recent radio broadcast, First Mortgage Solutions President Ryan Wiebe joined us to cover all aspects of the current mortgage market, including advice from realtors such as blackburn mortgages and his take on the recent spike in mortgage rates. Mortgage rates, and interest rates in general, have always been closely watched in the financial markets due to the big impact they can have on demand for housing, the overall economy, and ultimately, your investments. Ryan discussed what he’s seeing on the ground, covering everything from where mortgage rates may be heading to the tightness in credit from banks and the recent trend of increasing home values. We also discussed the results of an interesting survey conducted by real estate website Zillow and featured in an article on CNNMoney titled “Homebuyers Clueless About Mortgages”. The surprising results indicate that there are still some common misconceptions among homebuyers regarding mortgages and Ryan helped to clear up each of these.
In our weekly ETF Spotlight segment, keeping with the theme of the show, we delved into a mortgage backed security ETF (iShares Barclays MBS Bond ETF – ticker MBB). Mortgage backed securities are bonds backed by a pool of homeowner mortgages whereby the issuer of the bonds collects the monthly payments from that pool of mortgages and then passes on a proportionate share of the collected principal and interest to the bondholders. During the show, we explained the performance drivers of mortgage backed securities and where they may fit within your investment portfolio. Learn more about MBB by visiting www.etfbuzz.com.