[ak1]

I read that indeed the Fed opened up to buy both Fed treasures and Agency backed MBs. But everything sold to them was MBs. Even though they are agency backed MBs and deemed low risk, the banks wanted to hold onto the lowest risk assets, their T-bills. So as far as I read it was only agency backed MBs that the Fed bought today.

[ak1]

I read that indeed the Fed opened up to buy both Fed treasures and Agency backed MBs. But everything sold to them was MBs. Even though they are agency backed MBs and deemed low risk, the banks wanted to hold onto the lowest risk assets, their T-bills. So as far as I read it was only agency backed MBs that the Fed bought today.

[ak1]

I read that indeed the Fed opened up to buy both Fed treasures and Agency backed MBs. But everything sold to them was MBs. Even though they are agency backed MBs and deemed low risk, the banks wanted to hold onto the lowest risk assets, their T-bills. So as far as I read it was only agency backed MBs that the Fed bought today.

[ak1]

Sellers on the edges make the price.

We owned a house in the Bay area during the tech-wreck in 2001/2002. All it took for house prices on our street to nose-dive were two houses 100 feet apart desperately needing to sell, one due to a divorce. It didn’t matter that the rest of us could weather the storm, by the time the second desperate seller had sold their house the price was 25% less then the peak price earlier that year for exactly the same model on roughly the same lot size.

We are renting a home now nearby our old neighbour-hood and there are atleast 5 houses for sale in our neighbour-hood. Two of them are confirmed foreclosures on million dollar homes. I strongly suspect atleast 2 others are at a minimum pre-foreclosure and possibly foreclosure. Again two houses on the same street are for sale. One is empty and already has a reduced price. If this person is desperate to sell the other seller 50 feet away is going to have a heck of a time selling their house w/o reducing the price. There is also one home on our street with a sold sign, no sign of anyone having moved in and it looks like people are still taking a look at the house.

[ak1]

Sellers on the edges make the price.

We owned a house in the Bay area during the tech-wreck in 2001/2002. All it took for house prices on our street to nose-dive were two houses 100 feet apart desperately needing to sell, one due to a divorce. It didn’t matter that the rest of us could weather the storm, by the time the second desperate seller had sold their house the price was 25% less then the peak price earlier that year for exactly the same model on roughly the same lot size.

We are renting a home now nearby our old neighbour-hood and there are atleast 5 houses for sale in our neighbour-hood. Two of them are confirmed foreclosures on million dollar homes. I strongly suspect atleast 2 others are at a minimum pre-foreclosure and possibly foreclosure. Again two houses on the same street are for sale. One is empty and already has a reduced price. If this person is desperate to sell the other seller 50 feet away is going to have a heck of a time selling their house w/o reducing the price. There is also one home on our street with a sold sign, no sign of anyone having moved in and it looks like people are still taking a look at the house.

[ak1]

Sellers on the edges make the price.

We owned a house in the Bay area during the tech-wreck in 2001/2002. All it took for house prices on our street to nose-dive were two houses 100 feet apart desperately needing to sell, one due to a divorce. It didn’t matter that the rest of us could weather the storm, by the time the second desperate seller had sold their house the price was 25% less then the peak price earlier that year for exactly the same model on roughly the same lot size.

We are renting a home now nearby our old neighbour-hood and there are atleast 5 houses for sale in our neighbour-hood. Two of them are confirmed foreclosures on million dollar homes. I strongly suspect atleast 2 others are at a minimum pre-foreclosure and possibly foreclosure. Again two houses on the same street are for sale. One is empty and already has a reduced price. If this person is desperate to sell the other seller 50 feet away is going to have a heck of a time selling their house w/o reducing the price. There is also one home on our street with a sold sign, no sign of anyone having moved in and it looks like people are still taking a look at the house.

[ak1]

Pulled this link off of http://ml-implode.com/

Loan Underwriting changes at OptionOne Mortgage:

http://www.oomc.com/post/_marketing/phaseVII/phase7pg_price.html

The whole list of changes is very interesting especially the following:

“# Florida Condos: Option One will not accept submissions secured by condos in Florida”

If other lenders go the same way Florida Condos could be in significant trouble.

[ak1]

Pulled this link off of http://ml-implode.com/

Loan Underwriting changes at OptionOne Mortgage:

http://www.oomc.com/post/_marketing/phaseVII/phase7pg_price.html

The whole list of changes is very interesting especially the following:

“# Florida Condos: Option One will not accept submissions secured by condos in Florida”

If other lenders go the same way Florida Condos could be in significant trouble.

[ak1]

Pulled this link off of http://ml-implode.com/

Loan Underwriting changes at OptionOne Mortgage:

http://www.oomc.com/post/_marketing/phaseVII/phase7pg_price.html

The whole list of changes is very interesting especially the following:

“# Florida Condos: Option One will not accept submissions secured by condos in Florida”

If other lenders go the same way Florida Condos could be in significant trouble.

[ak1]

I just went to BankRate.com to peruse 30yr fixed rates.
Got sent to AmeriSave.com

I looked at a 700K home value with 10% down for a 630K mortgage. 700K is middle range home value in Fremont, CA.

Got back the following results:

30year fixed. 7.625% Apr 7.989%, total payment $4732/mos
30year fixed with Interest Only option. 7.75% with Apr 8.131%, total payment $4341/mos

If that’s any indication of what’s out there for a 10% down that’s a pretty drastic jump from a few weeks back.

[ak1]

I just went to BankRate.com to peruse 30yr fixed rates.
Got sent to AmeriSave.com

I looked at a 700K home value with 10% down for a 630K mortgage. 700K is middle range home value in Fremont, CA.

Got back the following results:

30year fixed. 7.625% Apr 7.989%, total payment $4732/mos
30year fixed with Interest Only option. 7.75% with Apr 8.131%, total payment $4341/mos

If that’s any indication of what’s out there for a 10% down that’s a pretty drastic jump from a few weeks back.

[ak1]

I just went to BankRate.com to peruse 30yr fixed rates.
Got sent to AmeriSave.com

I looked at a 700K home value with 10% down for a 630K mortgage. 700K is middle range home value in Fremont, CA.

Got back the following results:

30year fixed. 7.625% Apr 7.989%, total payment $4732/mos
30year fixed with Interest Only option. 7.75% with Apr 8.131%, total payment $4341/mos

If that’s any indication of what’s out there for a 10% down that’s a pretty drastic jump from a few weeks back.

[ak1]

I just noticed that Wells Fargo just increased their rate for 30 year fixed jumbo loans to 8% from 6 7/8% last week! Here’s the link http://online.wsj.com/article/SB118609866621886776.html?mod=yahoo_hs&ru=yahoo

Quote from the article

“Lenders are tightening standards and “raising rates like crazy,” said Melissa Cohn, chief executive of Manhattan Mortgage, a New York mortgage broker. She said Wells Fargo & Co. is charging 8% for a prime jumbo 30-year fixed-rate loan that carried a 6 7/8% rate late last week.”

[ak1]

I just noticed that Wells Fargo just increased their rate for 30 year fixed jumbo loans to 8% from 6 7/8% last week! Here’s the link http://online.wsj.com/article/SB118609866621886776.html?mod=yahoo_hs&ru=yahoo

Quote from the article

“Lenders are tightening standards and “raising rates like crazy,” said Melissa Cohn, chief executive of Manhattan Mortgage, a New York mortgage broker. She said Wells Fargo & Co. is charging 8% for a prime jumbo 30-year fixed-rate loan that carried a 6 7/8% rate late last week.”

[Author]

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