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Rising Interest Rates

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BUSINESS
By Eileen Ambrose, The Baltimore Sun | August 14, 2013
First Mariner Bancorp blamed rising interest rates and a slowdown in refinancings for its $1.48 million second quarter loss. On a per share basis, the Baltimore-based parent of 1 s t Mariner Bank, lost 8 cents in the quarter ended June 30. For the April-to-June period a year ago, First Mariner earned $5.67 million, or 30 cents per share. "Our results this quarter were dampened by rising long term interest rates, which slowed refinancings and overall revenue from our mortgage banking operations as compared to the second quarter of 2012," interim CEO Mark A. Keidel said in a statement.
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BUSINESS
By Eileen Ambrose, The Baltimore Sun | November 8, 2013
First Mariner Bancorp on Friday reported a $7.4 million loss in the third quarter, which the Baltimore-based company blamed on a steep increase on interest rates that dampened its mortgage business. The loss amounts to 38 cents per share, compared with a profit of $7.9 million, or 42 cents per share, for the quarter a year earlier. CEO Mark A. Keidel said the third-quarter results were affected by the "rapid and steep increase" in long-term Treasury rates. "Like most in the residential mortgage industry, we experienced declines in production and a significant compression of the margins on sold loans," Keidel said in a statement.
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NEWS
By Bill Atkinson and Bill Atkinson,SUN STAFF | July 22, 2004
Aether Systems Inc., the troubled wireless technology company that is transforming its operations, is entering a business that could pay off handsomely but has risks in a world based on interest rate swings and hedging strategies, industry experts said yesterday. The Owings Mills-based company plans to use $75 million of its cash to buy residential mortgage-backed securities from Freddie Mac, Fannie Mae and the Government National Mortgage Association as it shifts focus. It intends to borrow against its investment to build a portfolio of up to $675 million.
BUSINESS
By LAURA SMITHERMAN and LAURA SMITHERMAN,SUN REPORTER | July 26, 2006
Mercantile Bankshares Corp. reported yesterday that its net income rose nearly 8 percent, while management at Maryland's largest independent bank warned that rising interest rates would continue to put pressure on their ability to increase profits. The bank posted a second-quarter profit of $73.1 million, or 59 cents per share, compared with $67.9 million, or 56 cents per share, a year ago. The latest earnings were in line with analysts' estimates, according to those polled by Thomson Financial.
BUSINESS
By Bloomberg Business News | November 23, 1993
NEW YORK -- U.S. stocks fell yesterday amid concern about rising interest rates and a plunge in Japanese stocks.The Dow Jones industrial average slumped 23.76, to 3,670.25, while broader market indexes declined for a fourth straight session. The Standard & Poor's 500 Index fell 3.47, to 459.13.The Nasdaq Combined Composite Index plunged 13.43, to 738.13, closing at its lowest level since Sept. 21. The American Stock Exchange Market Value Index declined 7.10, to 460.88. About 14 common stocks were lower for every three that rose on the New York Stock Exchange.
NEWS
By NEW YORK TIMES NEWS SERVICE | April 14, 2006
The era of cheap money might be nearing its end. Investors pushed up the yield on the U.S. government's benchmark note to more than 5 percent yesterday, its highest point in nearly four years, signaling that many borrowers will soon be paying more on mortgages and home equity loans. Driven by a stronger economy and a nearly two-year-long money-tightening campaign by the Federal Reserve, rising interest rates are expected to have the biggest impact on people who took out home loans with low introductory interest rates that are set to adjust according to market rates in the next few years.
BUSINESS
By BLOOMBERG NEWS | April 10, 2005
Mortgage applications have declined to the lowest level since early January as purchases and refinancing have slowed, according to an industry report. The Washington-based Mortgage Bankers Association said last week that its gauge of mortgage applications dropped 4.4 percent, from 674.3 to 644.5 in the week that ended April 1. That was the lowest since the 587.8 reading for the week that ended Jan. 7. Rising interest rates might be lowering demand for housing, Douglas Duncan, chief economist at the Mortgage Bankers Association, said.
BUSINESS
By Kevin L. McQuaid and Kevin L. McQuaid,Sun Staff Writer | February 3, 1995
The Ryland Group Inc. yesterday reported significantly improved 1994 earnings, despite continued interest rate increases that hurt its fourth-quarter performance and are likely to depress the Columbia-based homebuilder's income growth in the coming year.For the 12 months that ended Dec. 31, Ryland generated net income of $24.46 million, or $1.42 a share, on revenue of $1.64 billion. In 1993, the company lost $2.7 million, or 34 cents a share, on revenue of $1.5 billion.But only $2.3 million, or 11 cents a share, of last year's profits came in the fourth quarter, as higher interest rates dampened buyers' ability to afford new houses and the amount of new mortgage business for the company.
BUSINESS
By Bloomberg Business News | December 2, 1994
NEW YORK -- U.S. stocks tumbled yesterday as reports signaling a robust economy stirred concern that rising interest rates will choke profit growth and entice more money into higher-yielding Treasury securities."
BUSINESS
By Lorraine Mirabella and Lorraine Mirabella,Sun Staff Writer | May 21, 1994
Despite harsh weather and rising interest rates, the Baltimore region's housing market grew stronger during the first three months of the year, signaling continuing improvement for the local economy, the U.S. Department of Housing and Urban Development said in a report released yesterday.In a look at the national housing market compared with the first three months of 1993, HUD economists said home sales and construction have improved markedly, based on statistics gathered from state and local governments and housing industry sources in 10 regions.
BUSINESS
By JAY HANCOCK and JAY HANCOCK,SUN COLUMNIST | May 10, 2006
For the first time in years, wages and salaries show signs of exceeding inflation and giving workers an honest piece of the economic recovery. And they certainly can't allow that at the Federal Reserve. The Fed will almost certainly increase short-term interest rates another quarter point today, continuing the tightening it began two years ago after deciding the country was recovering from terrorist shock and corporate fraud. The trouble is that wages and salaries weren't recovering two years ago and are only starting to revive now, improving the lot of the worker in ways that other indicators have not. By persisting in raising rates to try to slow growth and stifle inflation, Fed boss Ben Bernanke may end up stumbling in the most important part of his job: benefiting the average American.
NEWS
By NEW YORK TIMES NEWS SERVICE | April 14, 2006
The era of cheap money might be nearing its end. Investors pushed up the yield on the U.S. government's benchmark note to more than 5 percent yesterday, its highest point in nearly four years, signaling that many borrowers will soon be paying more on mortgages and home equity loans. Driven by a stronger economy and a nearly two-year-long money-tightening campaign by the Federal Reserve, rising interest rates are expected to have the biggest impact on people who took out home loans with low introductory interest rates that are set to adjust according to market rates in the next few years.
BUSINESS
By JUNE ARNEY and JUNE ARNEY,SUN REPORTER | April 11, 2006
Home sales in the Baltimore region dipped in March, the sixth straight month of decline over the previous year, and the buildup of inventory escalated as the market headed into the crucial spring selling season. Pricing, however, remained strong, posting double-digit gains over a year earlier. The 3,170 homes sold in Baltimore and five surrounding counties was a 13 percent decline from March 2005, according to figures released by Metropolitan Regional Information Systems Inc., a Rockville company that tracks homes sold through the multiple-listing service, reported yesterday.
BUSINESS
By BLOOMBERG NEWS | August 7, 2005
WASHINGTON - An index of mortgage applications fell as higher borrowing costs made it less profitable for homeowners to refinance. Home purchases increased. The Mortgage Bankers Association's measure of applications fell 0.3 percent to 752.1 in the week ended July 29, from 754.3. The level was the lowest since the last week of May. The average rate on a 30-year fixed mortgage rose to 5.83 percent in the week, the highest since the middle of April. The rise in interest rates, up in four of the last five weeks, pushed the group's gauge of refinancing down 3 percent to 2250.
NEWS
By Eileen Ambrose and Eileen Ambrose,SUN STAFF | June 29, 2005
For two weeks, Tom Gallagher didn't have much success reaching his son and daughter who are working at a camp deep in the Adirondacks. Cell phone reception is weak. Internet access is limited. Still, the Mitchellville father sent several e-mails reminding them to consolidate federal student loans before higher interest rates kick in Friday. "I've been pushing both of them to try to do that," said Gallagher, who did the same with $71,000 in parent loans last month. To his relief, his daughter e-mailed this week to say they're taking his advice.
BUSINESS
By BLOOMBERG NEWS | April 10, 2005
Mortgage applications have declined to the lowest level since early January as purchases and refinancing have slowed, according to an industry report. The Washington-based Mortgage Bankers Association said last week that its gauge of mortgage applications dropped 4.4 percent, from 674.3 to 644.5 in the week that ended April 1. That was the lowest since the 587.8 reading for the week that ended Jan. 7. Rising interest rates might be lowering demand for housing, Douglas Duncan, chief economist at the Mortgage Bankers Association, said.
BUSINESS
By Lorraine Mirabella and Lorraine Mirabella,Sun Staff Writer | December 7, 1994
Baltimore's housing market took its hardest hit in months in November, as home sales plummeted 23 percent, the Greater Baltimore Board of Realtors said yesterday.Realtors mostly blamed rising mortgage interest rates, but said higher taxes, loss of defense-related jobs and last year's burst of mortgage refinancing have all hurt the area's sales, which have fallen each month since July.In November, sales fell to 1,299, compared with 1,684 in the same month last year. The fewer sales came as little surprise to those in the industry, who had watched the number of sales contracts signed fall sharply in both September and October.
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