Not sure what input you were getting. Rates ARE lower than last week. Definite improvement.
The 10YR (TNX) spike up was from mid May,and after 9 weeks it’s right back to 4.8.
Rates are back to about where they were. Today, conforming FNMA-FHLMC 30YR Full Am are no more than 6.375% at par.
That’s .25-.375 less than a few weeks ago. 5YR ARM- 5.875%
Long term mortgage rates are not directly related to moves in the TNX. There is still an iverted yield curve. 30 YR rates are often less than 7 & 10 ARMS..
Qualifying is THE big issue. Average Joe/Jane have NO clue about underwriting guidelines. One tiny issue kills the deal for them, and can push their rate a full point or more.
General Comments:
Loans up to 80% still price well. 2nds behind the 80% is where the problem starts. Credit Score becomes so important. Higher the LTV, higher the risk to lender.
Lenders still price out 80/++ loans, with higher priced 2nds, but also price out single loans above 80%, with PMI included.
There is no need to worry about selling off the 2nds this way, but rate is higher.
There are zillions of dollars available looking for returns. There are crazy exotic loans being invented every week. Debt will bury people who don’t understand it, but it is an opportunity to wealth and a better life for those who do.
I don’t worry about trying to predict rate moves, it’s not fair to my clients. With a global economy, past trends mean little to me, and a quarter point move against someone can cost a small fortune over time, if I am wrong. Terrorists move 24 hours a day and so do the markets.
There are so many loan programs in the market, nobody can know them all. Prime loans don’t have prepay penalties, but today there is a low LTV subprime 5YR ARM that is cheaper than a prime loan, but it comes with a 3 YR prepay.
Giving people options so they can decide what’s right for them is what’s important to me, with the pros and cons.
Many people are in the wrong loan for various reasons, and many people have way too much equity tied up that they cannot get to. IMO they got bad advice.
Also amazing how many friends and family have screwed people on their mortgages.
Most people don’t know how to shop for a loan, and think that they got a great loan(but probably didn’t)
Many loan folks should be ashamed of themselves but they aren’t. It’s a rogues gallery. Smart people fall for no cost loans, that end up costing them dearly. Too many “salespeople” pushing loans that are not in borrower’s best interest. Too little understanding of options.
My point is, it’s more important to get the right rate/loan at any point in time, instead of waiting for rates to drop a quarter point and getting screwed on fees, but happy with the rate.
Too many people have been a slave to their mortgage, which could have been avoided.
The amount of “equity” that is tied up that people cannot get to is staggering, also paper profits in the stock market. Many people have a false sense of security which concerns me.
Whenever possible, my goal is to get people into better overall financial situations, not just a home loan, and get them to realize the risks, which many are oblivious to.]
Don’t know if I answered you question, what was it? 😉
