rates moving up fast

[IONEGARM]

[quote=FormerSanDiegan]Sometimes a smallish, e.g. 1/2 point, increase in rates can create a sense of urgency to buy now versus later (short-term phenomenon) [/quote]

You see this when the FED is acting.. the punch is telegraphed on the news nightly and the masses confuse fed rates with mortgage interest rates so they rush and lock before the rates go up.

But when the bond market spikes and rate sheets go up with no notice.. the horse is already out of the barn and people who could have had 4.75% but wanted 4.5% are left out in the cold.

[SD Realtor]

JohnAlt it hurts you because you qualify for less. Prices never adjust with interest rates, they usually respond a few months AFTER the rate movement. I agree with you buying at a lower price is always better. However your buying power does get reduced unless you have a strong cash component to the purchase, strong being a relative term, because it all depends on the price range of the home you are looking at.

People with stronger cash positions will always benefit greatly from a higher interest rate environment then those that do not.

[SD Realtor]

JohnAlt it hurts you because you qualify for less. Prices never adjust with interest rates, they usually respond a few months AFTER the rate movement. I agree with you buying at a lower price is always better. However your buying power does get reduced unless you have a strong cash component to the purchase, strong being a relative term, because it all depends on the price range of the home you are looking at.

People with stronger cash positions will always benefit greatly from a higher interest rate environment then those that do not.

[SD Realtor]

JohnAlt it hurts you because you qualify for less. Prices never adjust with interest rates, they usually respond a few months AFTER the rate movement. I agree with you buying at a lower price is always better. However your buying power does get reduced unless you have a strong cash component to the purchase, strong being a relative term, because it all depends on the price range of the home you are looking at.

People with stronger cash positions will always benefit greatly from a higher interest rate environment then those that do not.

[SD Realtor]

JohnAlt it hurts you because you qualify for less. Prices never adjust with interest rates, they usually respond a few months AFTER the rate movement. I agree with you buying at a lower price is always better. However your buying power does get reduced unless you have a strong cash component to the purchase, strong being a relative term, because it all depends on the price range of the home you are looking at.

People with stronger cash positions will always benefit greatly from a higher interest rate environment then those that do not.

[SD Realtor]

JohnAlt it hurts you because you qualify for less. Prices never adjust with interest rates, they usually respond a few months AFTER the rate movement. I agree with you buying at a lower price is always better. However your buying power does get reduced unless you have a strong cash component to the purchase, strong being a relative term, because it all depends on the price range of the home you are looking at.

People with stronger cash positions will always benefit greatly from a higher interest rate environment then those that do not.

[AK]

I’d guess that rising interest rates could kill some marginal deals. We may see yet another wave of relistings in a few weeks … more inventory, but more work and more headaches for agents and buyers and sellers alike.

Of course the effect of higher rates could be balanced out by the use of Barack Bucks for FHA down payments. And I thought “refund anticipation” loans were supposed to be a bad thing … anything to reinflate the bubble I guess.

[AK]

I’d guess that rising interest rates could kill some marginal deals. We may see yet another wave of relistings in a few weeks … more inventory, but more work and more headaches for agents and buyers and sellers alike.

Of course the effect of higher rates could be balanced out by the use of Barack Bucks for FHA down payments. And I thought “refund anticipation” loans were supposed to be a bad thing … anything to reinflate the bubble I guess.

[AK]

I’d guess that rising interest rates could kill some marginal deals. We may see yet another wave of relistings in a few weeks … more inventory, but more work and more headaches for agents and buyers and sellers alike.

Of course the effect of higher rates could be balanced out by the use of Barack Bucks for FHA down payments. And I thought “refund anticipation” loans were supposed to be a bad thing … anything to reinflate the bubble I guess.

[AK]

I’d guess that rising interest rates could kill some marginal deals. We may see yet another wave of relistings in a few weeks … more inventory, but more work and more headaches for agents and buyers and sellers alike.

Of course the effect of higher rates could be balanced out by the use of Barack Bucks for FHA down payments. And I thought “refund anticipation” loans were supposed to be a bad thing … anything to reinflate the bubble I guess.

[AK]

I’d guess that rising interest rates could kill some marginal deals. We may see yet another wave of relistings in a few weeks … more inventory, but more work and more headaches for agents and buyers and sellers alike.

Of course the effect of higher rates could be balanced out by the use of Barack Bucks for FHA down payments. And I thought “refund anticipation” loans were supposed to be a bad thing … anything to reinflate the bubble I guess.

[Arraya]

http://globaleconomicanalysis.blogspot.com/
Mortgage banks are going to be flooded with calls from people wanting to lock at 4.75. Sorry folks, those rates are gone.

I called Mark Hanson this morning to see if there was any improvement in the mortgage. Mark said “Rates fell from 5.5 to 5.375 on intervention rumors this morning but are now back to 5.5. If rates stay in the mid 5’s, new loan applications will quickly dry up.

By the way, that 5.5% rate is pretty much for the “perfect borrower” with a FICO score of 740 or higher and a 20% down payment. Jumbos are hovering near 8% with 1.5% points.

Mortgage banks that made unhedged commitments at 4.25-4.75% are now in a position to lose substantial sums of money.

Bernanke thought it would be an easy task to keep down mortgage rates. So much for a $1.2 trillion commitment. What’s next? A $2.4 trillion commitment? Fannie Mae, Freddie Mac, and the FHA are the lenders of only resort yet the Fed is still struggling to rig the market.

[Arraya]

http://globaleconomicanalysis.blogspot.com/
Mortgage banks are going to be flooded with calls from people wanting to lock at 4.75. Sorry folks, those rates are gone.

I called Mark Hanson this morning to see if there was any improvement in the mortgage. Mark said “Rates fell from 5.5 to 5.375 on intervention rumors this morning but are now back to 5.5. If rates stay in the mid 5’s, new loan applications will quickly dry up.

By the way, that 5.5% rate is pretty much for the “perfect borrower” with a FICO score of 740 or higher and a 20% down payment. Jumbos are hovering near 8% with 1.5% points.

Mortgage banks that made unhedged commitments at 4.25-4.75% are now in a position to lose substantial sums of money.

Bernanke thought it would be an easy task to keep down mortgage rates. So much for a $1.2 trillion commitment. What’s next? A $2.4 trillion commitment? Fannie Mae, Freddie Mac, and the FHA are the lenders of only resort yet the Fed is still struggling to rig the market.

[Arraya]

http://globaleconomicanalysis.blogspot.com/
Mortgage banks are going to be flooded with calls from people wanting to lock at 4.75. Sorry folks, those rates are gone.

I called Mark Hanson this morning to see if there was any improvement in the mortgage. Mark said “Rates fell from 5.5 to 5.375 on intervention rumors this morning but are now back to 5.5. If rates stay in the mid 5’s, new loan applications will quickly dry up.

By the way, that 5.5% rate is pretty much for the “perfect borrower” with a FICO score of 740 or higher and a 20% down payment. Jumbos are hovering near 8% with 1.5% points.

Mortgage banks that made unhedged commitments at 4.25-4.75% are now in a position to lose substantial sums of money.

Bernanke thought it would be an easy task to keep down mortgage rates. So much for a $1.2 trillion commitment. What’s next? A $2.4 trillion commitment? Fannie Mae, Freddie Mac, and the FHA are the lenders of only resort yet the Fed is still struggling to rig the market.

[Arraya]

http://globaleconomicanalysis.blogspot.com/
Mortgage banks are going to be flooded with calls from people wanting to lock at 4.75. Sorry folks, those rates are gone.

I called Mark Hanson this morning to see if there was any improvement in the mortgage. Mark said “Rates fell from 5.5 to 5.375 on intervention rumors this morning but are now back to 5.5. If rates stay in the mid 5’s, new loan applications will quickly dry up.

By the way, that 5.5% rate is pretty much for the “perfect borrower” with a FICO score of 740 or higher and a 20% down payment. Jumbos are hovering near 8% with 1.5% points.

Mortgage banks that made unhedged commitments at 4.25-4.75% are now in a position to lose substantial sums of money.

Bernanke thought it would be an easy task to keep down mortgage rates. So much for a $1.2 trillion commitment. What’s next? A $2.4 trillion commitment? Fannie Mae, Freddie Mac, and the FHA are the lenders of only resort yet the Fed is still struggling to rig the market.

[Author]

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