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Mortgage rates jump to 6% & expected to hit 8% and higher quickly

Rates of 6% and under are also not bad by a long shot. People would have killed for those rates six months ago. Rising mortgage rates can also be an indicator of overall economic strength.
 
Obviously the fact that bank rates are down around 1% or less has no bearing on the Mortgage Industry.
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Anyone who has even a rudimentary understanding of how capital is securitized for mortgages knows that the Fed rate has absolutely nothing to do mortgage rates. Generally speaking, the short term Fed rate may follow similar trends to the long term bond market as a whole, but it is not contributing factor of any real significance. This myth is created by marketing "professionals" and repeated by loan officers who can't even accurately explain the difference between APR and the note rate.
 
Originally posted by: Corn
Obviously the fact that bank rates are down around 1% or less has no bearing on the Mortgage Industry.
Click to expand...

Anyone who has even a rudimentary understanding of how capital is securitized for mortgages knows that the Fed rate has absolutely nothing to do mortgage rates. Generally speaking, the short term Fed rate may follow similar trends to the long term bond market as a whole, but it is not contributing factor of any real significance. This myth is created by marketing "professionals" and repeated by loan officers who can't even accurately explain the difference between APR and the note rate.
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I think Dmcowen knows that, he just wants to bitch at the establishment.
 
I think Dmcowen knows that, he just wants to bitch at the establishment.
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I agree....I wasn't taking a potshot at Dave, just at "professionals" (like David Hall at Rock Financial) who purport this myth. I quoted Dave simply because it was clear it was an example of how easy car salesmen turned mortgage "professionals" can dupe the average Joe to hurry up and refi cuz the fed just cut, or is going to increase, the short term rate.
 
Originally posted by: tnitsuj
Originally posted by: Corn
Obviously the fact that bank rates are down around 1% or less has no bearing on the Mortgage Industry.
Click to expand...

Anyone who has even a rudimentary understanding of how capital is securitized for mortgages knows that the Fed rate has absolutely nothing to do mortgage rates. Generally speaking, the short term Fed rate may follow similar trends to the long term bond market as a whole, but it is not contributing factor of any real significance. This myth is created by marketing "professionals" and repeated by loan officers who can't even accurately explain the difference between APR and the note rate.
Click to expand...

I think Dmcowen knows that, he just wants to bitch at the establishment.
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Thanks, it was exactly that, a rant about the "Establishment" and they get to pull on the strings of the puppetry public at will.

"No where in that article does it say that rates are expected to go to 8% and higher quickly".

Ahhh, you were reading 🙂 , The 8% is from a local Paper article that also came out today because Interest rates shot up so quickly like Gas prices go up 15 cents overnight but take months to down 😕 :|

 
they ain't going to 8%.

I predict that they will go down again (though not as low as they were back in June) there will be a 10-15% correction in the stock market, and that will cause rates to go lower.

I pray that is the case because I am building a house and won't be able to lock my rate till November or so!
 
I pray that is the case because I am building a house and won't be able to lock my rate till November or so!
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Have you tried to see about any extended lock options from any major lenders/banks in your area? There used to be several lenders who offered 3-6 month extended rate lock programs (Standard Federal, Interfirst, and Countrywide used to offer these, you may try them to see if they still do). Granted these locks required some upfront coin (usually to the tune of .25 - .5%), but it's well worth that cost when facing possible interest rate hikes. You know you're going to purchase your home, you might as well lock now while rates are still attractive.
 
Originally posted by: Corn
Obviously the fact that bank rates are down around 1% or less has no bearing on the Mortgage Industry.
Click to expand...
Anyone who has even a rudimentary understanding of how capital is securitized for mortgages knows that the Fed rate has absolutely nothing to do mortgage rates. Generally speaking, the short term Fed rate may follow similar trends to the long term bond market as a whole, but it is not contributing factor of any real significance. This myth is created by marketing "professionals" and repeated by loan officers who can't even accurately explain the difference between APR and the note rate.
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😛 😀

Ah, but if you only worked retail, Corn, you'd know about all those dumbass customers who call the day the Fed lowers rates a 1/4 and demand their 1/4 off too...
rolleye.gif


"Rates went up? What kinda scam you tryin' ta pull? I heard the Fed just lowered 'em!"

sigh...

And I seriously doubt that rates are headed up past 8%. And there will always be a market for refi's, people always need money. Just not always for FNMA/FHLMC rate-and-terms...

edit: anyway, this is old news. Rates started going up June 9... I even saw it coming and locked a ton of loans at the bottom.
 
You think rates are getting high ? Wait until the final deficit figures for this year reach 600 billion and approach 1 trillion in a single year next year.
 
I remember in the late 70s to early 80's when 14 percent mortgages were not uncommon. You people are spoiled.
 
Originally posted by: mastertech01
I remember in the late 70s to early 80's when 14 percent mortgages were not uncommon. You people are spoiled.
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Yep. Our first mortgage was 12.5%. The only silver lining was that it was a buyer's market for houses. We got ours for about 18% below its appraised value. The only houses selling well were ones with assumable mortgages.
 
Originally posted by: drewshin
if you want a good idea of where rates are, look at the 30 year treasuries. symbol is ^tyx on biz.yahoo.com.
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Actually the 10 year treasury bond, symbol on Yahoo is ^TNX.
 
Woot guess who got refinanced in June at 5.12%...

<------- Just in time...

Went through Lendingtree.com, they sent a mobile closer out to my house a couple weeks ago, we signed a few sheets of paper and it was done... Pretty easy, about $2k in closing costs, but it's saving over $60k on the life of the loan...
 
Originally posted by: Murphyrulez
Woot guess who got refinanced in June at 5.12%...

<------- Just in time...

Went through Lendingtree.com, they sent a mobile closer out to my house a couple weeks ago, we signed a few sheets of paper and it was done... Pretty easy, about $2k in closing costs, but it's saving over $60k on the life of the loan...
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Congrats.
But you're only saving that $60k if you shortened your term. If you reamortized out to 30 again, then you may actually be losing money depending on how long you had been paying on your previous loan.
 
You think rates are getting high ? Wait until the final deficit figures for this year reach 600 billion and approach 1 trillion in a single year next year.
 
Originally posted by: Macro2
You think rates are getting high ? Wait until the final deficit figures for this year reach 600 billion and approach 1 trillion in a single year next year.
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On the backs of future generations do we place the burden of today's orgy. The future looks so bright I'd rather wear shades like you.
 
RE:"On the backs of future generations do we place the burden of today's orgy. The future looks so bright I'd rather wear shades like you."

That was rather poetic, did you write that yourself?
 
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