slowing down

[SK in CV]

[quote=The-Shoveler]Last week,
FED SUGGESTS IT’S CLOSER TO SLOWING BOND PURCHASES

http://bigstory.ap.org/article/fed-says-it-will-continue-85b-bond-purchases%5B/quote%5D

So they never actually took their foot off the gas. “Will continue 85B [per month] bond purchases”. They announced they are continuing with the same level of purchases. Not taking their foot off the gas.

[The-Shoveler]

The Fed talking about removing stimulus in the near future has about the same affect,

No one wants to be the guy without the chair when the music stops.

[all]

[quote=SD Realtor]I will present some data tonight that shows a slowdown in a few submarkets for certain types of properties.[/quote]

Any updates on the #’s?

[no_such_reality]

[quote=SD Realtor]arrrrggggg….

Sometimes it can be so challenging reading posts.

No a little over a month ago you could not get a 3% mortgage. You could get perhaps a 3.625% rate. That same mortgage today with the same points is close to 4.5%. Rates move up instantaneously on days when the benchmark moves but take a few days to retrace when the benchmark goes the other way. Yes this does affect buyers. [/quote]

Less than two months ago, I was looking at refi-ing my jumbo. I could have had 3.625% no costs, was holding out for 3.5%, today, that same loan is 4.99%.

Rates are up about 1.25% in the last two months and just under 1% in the last month.

On a $500K loan, that’s $5000/yr from the low point on rates. The double whammy is the homes have gone up insanely fast. The triple whammy is the points are even steeper to do a buy down and I’m seeing a lot of the 0.25% pts on the base loan amount (volatility buffer by the lenders), which is a trivial, but pertinent, $1000 for people up front.

[(former)FormerSanDiegan]

Meanwhile… short-term interest rates remain relatively stable.

Look for the 5-year ARM to re-emerge as the weapon of choice for buyers sometime between now and next spring (assuming the yield curve remains as steep or steeper than it is now).

[SD Realtor]

All the FED did last week was to reiterate what the intended plan has been all along. So they either were to stick with the plan or announce a QE4.

[The-Shoveler]

Last week:
WASHINGTON (AP) — In a move that could send interest rates higher, Fed Chairman Ben Bernanke ended weeks of speculation Wednesday by saying the Federal Reserve will likely slow its bond-buying program this year and end it next year because the economy is strengthening.

I guess that meant no QE4

Whatever that seemed to be enough to make some bond holders feel the FED just said, party over everyone out of the pool.

[The-Shoveler]

[quote=spdrun] I’ve actually seen a few deals that will cash flow in the last week or so.[/quote]

I would not be surprised if all (or most) of your full list price (or near full list price) offers get accepted.

Let us know how it goes.

[dumbrenter]

[quote=SD Realtor]DR very few. Most of them used fixed rate conforming loans. Some used FHA. However in no way do I see any sort of squeeze coming because alot of people carrying arms. The rates were so low there was no reason to.[/quote]

Thanks. And those that need to sell (e.g. because of job move) might be affected even if they were on fixed rate loans.

[Author]

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