Mortgage Demand Surge this week ??

[HLS]

OK,, Press release from an “industry group” today.

http://www.cnbc.com/id/20173189

Another spin ? Rates DIVE ?
Was it a swan dive or a nose dive ??
ANOTHER misleading spin ????

Jumbo rates actually went UP. Conforming rates may have ticked down, but I guess that I missed the DIVE.

I don’t know how they track these, but I think that the real reason for the increase was submitting apps to multiple lenders not knowing who could underwrite what right now, there is still mass confusion, worry and concern.

Appropriate title of press release should have been CONFUSION IN MORTGAGE MARKET HIGHEST EVER.

Also interesting is the last 2 lines:
“survey covers about 50% of all U.S. retail residential loans”

So they took results from the areas that they liked and doubled them to come up with their result ?

On another note, Australia’s central bank raised interest rates to a decade-high of 6.5% on Wednesday. $AUD is up about 60% against the US$ over the last 5 years, and about 22% over the last 2 years.
I used to do transact business in Australia.In 1980 the AUD $ was over US$1.15 and dropped as low as 52c a few years ago, now back to 86c, well below the rate 27 years ago.

[HereWeGo]

Moreover, investors took a lot of confidence from the “What? Me Worry?” Fed announcement yesterday.

The homebuilders, lenders, and financials are all way, way up. Could it be that housing is near a bottom? I don’t see it, but the market seems to disagree (for the moment.)

[HereWeGo]

Moreover, investors took a lot of confidence from the “What? Me Worry?” Fed announcement yesterday.

The homebuilders, lenders, and financials are all way, way up. Could it be that housing is near a bottom? I don’t see it, but the market seems to disagree (for the moment.)

[HereWeGo]

Moreover, investors took a lot of confidence from the “What? Me Worry?” Fed announcement yesterday.

The homebuilders, lenders, and financials are all way, way up. Could it be that housing is near a bottom? I don’t see it, but the market seems to disagree (for the moment.)

[LA_Renter]

There has been a flight to quality in the bond market that is now expanding into top quality mortgages. That explains the few ticks down in conforming rates. During the chaos over the past few weeks anything that had the word mortgage was shunned, thats why you had yields on the 10 yr note falling while the conforming rates were going up. Subprime and now Alt-A are basically gone and the rates on jumbo’s are rising. I have been reading the mortgage broker forums and those guys are still scrambling, the programs they were using are dropping like flies. As far as the increase in mortgage applications, yes given the current crisis multiple applications are filed trying to find the last vestiges of cheap money. There is a huge short squeeze going on today in HB’s and lenders, I guess CNBC is giving some headlines to help fuel it. Nothing has changed, we are still in a credit crunch. There will be a big hedge fund or lender that will going belly up or a series of them in the near future. All is not clear.

[LA_Renter]

There has been a flight to quality in the bond market that is now expanding into top quality mortgages. That explains the few ticks down in conforming rates. During the chaos over the past few weeks anything that had the word mortgage was shunned, thats why you had yields on the 10 yr note falling while the conforming rates were going up. Subprime and now Alt-A are basically gone and the rates on jumbo’s are rising. I have been reading the mortgage broker forums and those guys are still scrambling, the programs they were using are dropping like flies. As far as the increase in mortgage applications, yes given the current crisis multiple applications are filed trying to find the last vestiges of cheap money. There is a huge short squeeze going on today in HB’s and lenders, I guess CNBC is giving some headlines to help fuel it. Nothing has changed, we are still in a credit crunch. There will be a big hedge fund or lender that will going belly up or a series of them in the near future. All is not clear.

[LA_Renter]

There has been a flight to quality in the bond market that is now expanding into top quality mortgages. That explains the few ticks down in conforming rates. During the chaos over the past few weeks anything that had the word mortgage was shunned, thats why you had yields on the 10 yr note falling while the conforming rates were going up. Subprime and now Alt-A are basically gone and the rates on jumbo’s are rising. I have been reading the mortgage broker forums and those guys are still scrambling, the programs they were using are dropping like flies. As far as the increase in mortgage applications, yes given the current crisis multiple applications are filed trying to find the last vestiges of cheap money. There is a huge short squeeze going on today in HB’s and lenders, I guess CNBC is giving some headlines to help fuel it. Nothing has changed, we are still in a credit crunch. There will be a big hedge fund or lender that will going belly up or a series of them in the near future. All is not clear.

[HLS]

LA_R….

Realize that most of the “mortgage broker forums” are GENERALLY not the elite or best of the best.

Many posts are typically “where do I get the highest rebate” (kickback) OR “Who will do 100% financing with a 500 score”

A small % of professionals and a HUGE % of slimy salespeople
who don’t think twice about screwing a borrower, with a larger number of trolls who are taking notes.

You rarely if ever see a post about integrity or what is best for the borrower. An indication of what is happening, but consider you source! 😉

There are plenty of solid lenders still underwriting all kinds of loans. The lower the LTV, the higher your score, the easier it is.

Conforming amount Stated Income refi’s to 95% are still VERY possible. There’s too much money around for jumbo rates to stay high, but the LTV will determine the rate.

High LTV loans will find little interest and high rates unless the govt steps in with an insurance plan, which is a possibility to restore order.

[HLS]

LA_R….

Realize that most of the “mortgage broker forums” are GENERALLY not the elite or best of the best.

Many posts are typically “where do I get the highest rebate” (kickback) OR “Who will do 100% financing with a 500 score”

A small % of professionals and a HUGE % of slimy salespeople
who don’t think twice about screwing a borrower, with a larger number of trolls who are taking notes.

You rarely if ever see a post about integrity or what is best for the borrower. An indication of what is happening, but consider you source! 😉

There are plenty of solid lenders still underwriting all kinds of loans. The lower the LTV, the higher your score, the easier it is.

Conforming amount Stated Income refi’s to 95% are still VERY possible. There’s too much money around for jumbo rates to stay high, but the LTV will determine the rate.

High LTV loans will find little interest and high rates unless the govt steps in with an insurance plan, which is a possibility to restore order.

[HLS]

LA_R….

Realize that most of the “mortgage broker forums” are GENERALLY not the elite or best of the best.

Many posts are typically “where do I get the highest rebate” (kickback) OR “Who will do 100% financing with a 500 score”

A small % of professionals and a HUGE % of slimy salespeople
who don’t think twice about screwing a borrower, with a larger number of trolls who are taking notes.

You rarely if ever see a post about integrity or what is best for the borrower. An indication of what is happening, but consider you source! 😉

There are plenty of solid lenders still underwriting all kinds of loans. The lower the LTV, the higher your score, the easier it is.

Conforming amount Stated Income refi’s to 95% are still VERY possible. There’s too much money around for jumbo rates to stay high, but the LTV will determine the rate.

High LTV loans will find little interest and high rates unless the govt steps in with an insurance plan, which is a possibility to restore order.

[LA_Renter]

HLS,

I see your point and don’t doubt that but here is what I am paying attention to, it’s the tone of the boards of being shell shocked that was not present before the last few weeks. To me that is a barometer of what is going on out there. Of course loans are not going to dry up completely but from my view it does appear that this is a very very different environment. I mean if you can only give loans to people that can actually afford them it will pretty much tank the California market don’t you think. 🙂

[LA_Renter]

HLS,

I see your point and don’t doubt that but here is what I am paying attention to, it’s the tone of the boards of being shell shocked that was not present before the last few weeks. To me that is a barometer of what is going on out there. Of course loans are not going to dry up completely but from my view it does appear that this is a very very different environment. I mean if you can only give loans to people that can actually afford them it will pretty much tank the California market don’t you think. 🙂

[LA_Renter]

HLS,

I see your point and don’t doubt that but here is what I am paying attention to, it’s the tone of the boards of being shell shocked that was not present before the last few weeks. To me that is a barometer of what is going on out there. Of course loans are not going to dry up completely but from my view it does appear that this is a very very different environment. I mean if you can only give loans to people that can actually afford them it will pretty much tank the California market don’t you think. 🙂

[HLS]

Definitely not arguing with you..
I’m in the loan origiantion biz. I see some sad cases.
It’s simply too late to help them.
The crying on the “boards” IS an indication of the mess.

My guess is that at least 80%-90% of people bought property before 2003. They have decent loans and plenty of equity IF they didn’t use their home as an ATM machine.

The problems are for people who bought since 2005, with ARMS and those with little or no equity. It’s prob less than 10% of homes, but will get 99% of the media attention.

It’s going to be a mess, I’ve been saying it for years.

Most people don’t day trade their homes. Many people live in homes that are worth 5x-10x (or more) what they paid, and aren’t moving. It’s a crappy return on their asset, but don’t care.

What many people don’t realize is that even with a pile of equity in their home, they cannot get to it because they don’t qualify for a decent loan.

Some people are making a huge financial mistake by wanting their mortgage paid off sooner or completely.

[HLS]

Definitely not arguing with you..
I’m in the loan origiantion biz. I see some sad cases.
It’s simply too late to help them.
The crying on the “boards” IS an indication of the mess.

My guess is that at least 80%-90% of people bought property before 2003. They have decent loans and plenty of equity IF they didn’t use their home as an ATM machine.

The problems are for people who bought since 2005, with ARMS and those with little or no equity. It’s prob less than 10% of homes, but will get 99% of the media attention.

It’s going to be a mess, I’ve been saying it for years.

Most people don’t day trade their homes. Many people live in homes that are worth 5x-10x (or more) what they paid, and aren’t moving. It’s a crappy return on their asset, but don’t care.

What many people don’t realize is that even with a pile of equity in their home, they cannot get to it because they don’t qualify for a decent loan.

Some people are making a huge financial mistake by wanting their mortgage paid off sooner or completely.

[Author]

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