interest rates

[mike92104]

The arguments are good, but the fact is that mortgage rates have gone up.

[peterb]

Trouble right now is that there’s this little thing that’s came back into the loan business in the last year…..risk! And it’s looking like the party pooper. Defaults on home loans in CA hit 75,000 last month. And it’s growing. The last top for foreclosures was 1996 at 15,000 in one month. So I’d say lenders are looking at real estate as a pretty darn risky loan right now. Especially when you consider how the prices are going down for homes. So eventhough currency is at an all-time low cost for the banks, thanks to TPTB, lenders are not lowering rates nor are they all that motivated to make a mortgage loan.
Most lenders should actually be outta business right now if regulations were being enforced.

[peterb]

Trouble right now is that there’s this little thing that’s came back into the loan business in the last year…..risk! And it’s looking like the party pooper. Defaults on home loans in CA hit 75,000 last month. And it’s growing. The last top for foreclosures was 1996 at 15,000 in one month. So I’d say lenders are looking at real estate as a pretty darn risky loan right now. Especially when you consider how the prices are going down for homes. So eventhough currency is at an all-time low cost for the banks, thanks to TPTB, lenders are not lowering rates nor are they all that motivated to make a mortgage loan.
Most lenders should actually be outta business right now if regulations were being enforced.

[peterb]

Trouble right now is that there’s this little thing that’s came back into the loan business in the last year…..risk! And it’s looking like the party pooper. Defaults on home loans in CA hit 75,000 last month. And it’s growing. The last top for foreclosures was 1996 at 15,000 in one month. So I’d say lenders are looking at real estate as a pretty darn risky loan right now. Especially when you consider how the prices are going down for homes. So eventhough currency is at an all-time low cost for the banks, thanks to TPTB, lenders are not lowering rates nor are they all that motivated to make a mortgage loan.
Most lenders should actually be outta business right now if regulations were being enforced.

[peterb]

Trouble right now is that there’s this little thing that’s came back into the loan business in the last year…..risk! And it’s looking like the party pooper. Defaults on home loans in CA hit 75,000 last month. And it’s growing. The last top for foreclosures was 1996 at 15,000 in one month. So I’d say lenders are looking at real estate as a pretty darn risky loan right now. Especially when you consider how the prices are going down for homes. So eventhough currency is at an all-time low cost for the banks, thanks to TPTB, lenders are not lowering rates nor are they all that motivated to make a mortgage loan.
Most lenders should actually be outta business right now if regulations were being enforced.

[peterb]

Trouble right now is that there’s this little thing that’s came back into the loan business in the last year…..risk! And it’s looking like the party pooper. Defaults on home loans in CA hit 75,000 last month. And it’s growing. The last top for foreclosures was 1996 at 15,000 in one month. So I’d say lenders are looking at real estate as a pretty darn risky loan right now. Especially when you consider how the prices are going down for homes. So eventhough currency is at an all-time low cost for the banks, thanks to TPTB, lenders are not lowering rates nor are they all that motivated to make a mortgage loan.
Most lenders should actually be outta business right now if regulations were being enforced.

[SD Realtor]

Well…..

These are all quite interesting answers. Honestly though? Mortgage rates have jumped because on 10/23 the 10 year treasury yield sat at about 3.54% and on 10/31 the yield closed at 3.97.

So while interest rates “should” do this or do that with respect to the above arguments, the fact of the matter is that long term mortgage rates will pretty much follow the treasury yield. The wildcard is the spread which is the risk premium. Last year or 2 years ago the risk premium was about 1.25 points and today it is a little more then double that. So go figure.

What you have seen is a selloff in treasuries. Probable cause is the equity rally.

Make no mistake, interest rates will rise quite substantially in the future. That will have a substantial effect on housing. My read is the treasury yield will fluctuate betwen 3.5 and 5 for the next year or so. Just a guess.

[SD Realtor]

Well…..

These are all quite interesting answers. Honestly though? Mortgage rates have jumped because on 10/23 the 10 year treasury yield sat at about 3.54% and on 10/31 the yield closed at 3.97.

So while interest rates “should” do this or do that with respect to the above arguments, the fact of the matter is that long term mortgage rates will pretty much follow the treasury yield. The wildcard is the spread which is the risk premium. Last year or 2 years ago the risk premium was about 1.25 points and today it is a little more then double that. So go figure.

What you have seen is a selloff in treasuries. Probable cause is the equity rally.

Make no mistake, interest rates will rise quite substantially in the future. That will have a substantial effect on housing. My read is the treasury yield will fluctuate betwen 3.5 and 5 for the next year or so. Just a guess.

[SD Realtor]

Well…..

These are all quite interesting answers. Honestly though? Mortgage rates have jumped because on 10/23 the 10 year treasury yield sat at about 3.54% and on 10/31 the yield closed at 3.97.

So while interest rates “should” do this or do that with respect to the above arguments, the fact of the matter is that long term mortgage rates will pretty much follow the treasury yield. The wildcard is the spread which is the risk premium. Last year or 2 years ago the risk premium was about 1.25 points and today it is a little more then double that. So go figure.

What you have seen is a selloff in treasuries. Probable cause is the equity rally.

Make no mistake, interest rates will rise quite substantially in the future. That will have a substantial effect on housing. My read is the treasury yield will fluctuate betwen 3.5 and 5 for the next year or so. Just a guess.

[SD Realtor]

Well…..

These are all quite interesting answers. Honestly though? Mortgage rates have jumped because on 10/23 the 10 year treasury yield sat at about 3.54% and on 10/31 the yield closed at 3.97.

So while interest rates “should” do this or do that with respect to the above arguments, the fact of the matter is that long term mortgage rates will pretty much follow the treasury yield. The wildcard is the spread which is the risk premium. Last year or 2 years ago the risk premium was about 1.25 points and today it is a little more then double that. So go figure.

What you have seen is a selloff in treasuries. Probable cause is the equity rally.

Make no mistake, interest rates will rise quite substantially in the future. That will have a substantial effect on housing. My read is the treasury yield will fluctuate betwen 3.5 and 5 for the next year or so. Just a guess.

[SD Realtor]

Well…..

These are all quite interesting answers. Honestly though? Mortgage rates have jumped because on 10/23 the 10 year treasury yield sat at about 3.54% and on 10/31 the yield closed at 3.97.

So while interest rates “should” do this or do that with respect to the above arguments, the fact of the matter is that long term mortgage rates will pretty much follow the treasury yield. The wildcard is the spread which is the risk premium. Last year or 2 years ago the risk premium was about 1.25 points and today it is a little more then double that. So go figure.

What you have seen is a selloff in treasuries. Probable cause is the equity rally.

Make no mistake, interest rates will rise quite substantially in the future. That will have a substantial effect on housing. My read is the treasury yield will fluctuate betwen 3.5 and 5 for the next year or so. Just a guess.

[Author]

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