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Bugs.
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August 13, 2007 at 12:50 PM #74592August 13, 2007 at 12:57 PM #74471
GoUSC
ParticipantI don’t agree with comments about rates going to come down. The simple issue here is that the spread between these loans and the risk-free treasury is way to low. Why on earth would an investor accept a 6% return on a risky investment compared to 5% for a T-bill? It just doesn’t add up and eventually people figured it out. Sorry folks but outside of the conforming loans that are bought by FM & FM we are going to see higher rates for all other loans for quite some time.
August 13, 2007 at 12:57 PM #74590ParticipantI don’t agree with comments about rates going to come down. The simple issue here is that the spread between these loans and the risk-free treasury is way to low. Why on earth would an investor accept a 6% return on a risky investment compared to 5% for a T-bill? It just doesn’t add up and eventually people figured it out. Sorry folks but outside of the conforming loans that are bought by FM & FM we are going to see higher rates for all other loans for quite some time.
August 13, 2007 at 12:57 PM #74596ParticipantI don’t agree with comments about rates going to come down. The simple issue here is that the spread between these loans and the risk-free treasury is way to low. Why on earth would an investor accept a 6% return on a risky investment compared to 5% for a T-bill? It just doesn’t add up and eventually people figured it out. Sorry folks but outside of the conforming loans that are bought by FM & FM we are going to see higher rates for all other loans for quite some time.
August 13, 2007 at 1:15 PM #74488PerryChase
Participant“the fear of the known may eventually prove itself worse than the fear of the unknown.”
I nominate this quote as one of the best of Piggington. Bugs gets best real estate commentary and temeculaguy gets best creative writing.
Let’s wait until late 2008 to find out the knowns that are now unknown. Did anyone notice that it gets a little worse as the known unknowns come to light?
August 13, 2007 at 1:15 PM #74604Participant“the fear of the known may eventually prove itself worse than the fear of the unknown.”
I nominate this quote as one of the best of Piggington. Bugs gets best real estate commentary and temeculaguy gets best creative writing.
Let’s wait until late 2008 to find out the knowns that are now unknown. Did anyone notice that it gets a little worse as the known unknowns come to light?
August 13, 2007 at 1:15 PM #74611Participant“the fear of the known may eventually prove itself worse than the fear of the unknown.”
I nominate this quote as one of the best of Piggington. Bugs gets best real estate commentary and temeculaguy gets best creative writing.
Let’s wait until late 2008 to find out the knowns that are now unknown. Did anyone notice that it gets a little worse as the known unknowns come to light?
August 13, 2007 at 1:18 PM #74491davelj
ParticipantTo paraphrase Mark Twain:
“It’s not the things you don’t know that get you into trouble; it’s the things you know for certain that just ain’t so.”
August 13, 2007 at 1:18 PM #74607ParticipantTo paraphrase Mark Twain:
“It’s not the things you don’t know that get you into trouble; it’s the things you know for certain that just ain’t so.”
August 13, 2007 at 1:18 PM #74614ParticipantTo paraphrase Mark Twain:
“It’s not the things you don’t know that get you into trouble; it’s the things you know for certain that just ain’t so.”
August 13, 2007 at 1:38 PM #74495stop_the_bubble_hype
ParticipantLending,
Been here, done that with this conversation before. Read a thread from a month or two back about who the buyers are in San Diego.
We all have different reasons for what we do — appeciate your concern but we’re well advised.
The point of my post was to bring some reality to the original post and show that the rates being quoted were not as bad as the original poster suggested. I have yet to see anyone comment on the stated fact that I brought up. I suspected that the messenger would be shot (e.g. comments about buying during the bubble, etc.) — just another case of group think at work here. No one wants to hear a thought that is contrary to the masses.
Hype
August 13, 2007 at 1:38 PM #74613ParticipantLending,
Been here, done that with this conversation before. Read a thread from a month or two back about who the buyers are in San Diego.
We all have different reasons for what we do — appeciate your concern but we’re well advised.
The point of my post was to bring some reality to the original post and show that the rates being quoted were not as bad as the original poster suggested. I have yet to see anyone comment on the stated fact that I brought up. I suspected that the messenger would be shot (e.g. comments about buying during the bubble, etc.) — just another case of group think at work here. No one wants to hear a thought that is contrary to the masses.
Hype
August 13, 2007 at 1:38 PM #74620ParticipantLending,
Been here, done that with this conversation before. Read a thread from a month or two back about who the buyers are in San Diego.
We all have different reasons for what we do — appeciate your concern but we’re well advised.
The point of my post was to bring some reality to the original post and show that the rates being quoted were not as bad as the original poster suggested. I have yet to see anyone comment on the stated fact that I brought up. I suspected that the messenger would be shot (e.g. comments about buying during the bubble, etc.) — just another case of group think at work here. No one wants to hear a thought that is contrary to the masses.
Hype
August 13, 2007 at 1:50 PM #74516Bugs
ParticipantThe actual number on the rate isn’t what people should find scary – it’s the trend toward increases. The rest of the secondary market is just now coming around to the message the Fed started sending out 18 months ago. Interest rates have been way underpriced based on the risks involved.
August 13, 2007 at 1:50 PM #74635ParticipantThe actual number on the rate isn’t what people should find scary – it’s the trend toward increases. The rest of the secondary market is just now coming around to the message the Fed started sending out 18 months ago. Interest rates have been way underpriced based on the risks involved.
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