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SD Realtor
ParticipantTough call man…greedy or smart… usually they do not go hand in hand…let’s just say you are trying to get the best rate possible and leave it at that.
Like I said, I am not expert on the bond market. That is where guys like Chris S and the experts come in. All I can tell you is to keep checking that 10 year treasury yield every day or more…
Sometimes the lenders have a 1 time rate adjustment but I take it the program you are looking at does not have that eh? That allows you to lock in BUT you also get a 1 time chance to relock during the escrow period.
SD Realtor
ParticipantTough call man…greedy or smart… usually they do not go hand in hand…let’s just say you are trying to get the best rate possible and leave it at that.
Like I said, I am not expert on the bond market. That is where guys like Chris S and the experts come in. All I can tell you is to keep checking that 10 year treasury yield every day or more…
Sometimes the lenders have a 1 time rate adjustment but I take it the program you are looking at does not have that eh? That allows you to lock in BUT you also get a 1 time chance to relock during the escrow period.
SD Realtor
ParticipantTough call man…greedy or smart… usually they do not go hand in hand…let’s just say you are trying to get the best rate possible and leave it at that.
Like I said, I am not expert on the bond market. That is where guys like Chris S and the experts come in. All I can tell you is to keep checking that 10 year treasury yield every day or more…
Sometimes the lenders have a 1 time rate adjustment but I take it the program you are looking at does not have that eh? That allows you to lock in BUT you also get a 1 time chance to relock during the escrow period.
SD Realtor
ParticipantUnfortunately many of the short sales already have offers in process with the lender. Same with alot of the REO’s.
So yeah they are still active and they are collecting more offers while the lender processes them.
Net result is that it will be positive because comps in the future will be lower.
SD Realtor
ParticipantUnfortunately many of the short sales already have offers in process with the lender. Same with alot of the REO’s.
So yeah they are still active and they are collecting more offers while the lender processes them.
Net result is that it will be positive because comps in the future will be lower.
SD Realtor
ParticipantUnfortunately many of the short sales already have offers in process with the lender. Same with alot of the REO’s.
So yeah they are still active and they are collecting more offers while the lender processes them.
Net result is that it will be positive because comps in the future will be lower.
SD Realtor
ParticipantUnfortunately many of the short sales already have offers in process with the lender. Same with alot of the REO’s.
So yeah they are still active and they are collecting more offers while the lender processes them.
Net result is that it will be positive because comps in the future will be lower.
SD Realtor
ParticipantUnfortunately many of the short sales already have offers in process with the lender. Same with alot of the REO’s.
So yeah they are still active and they are collecting more offers while the lender processes them.
Net result is that it will be positive because comps in the future will be lower.
SD Realtor
ParticipantGuys –
HLS or Pasadena broker and mortgage professionals have more expert takes then I do. With that said long term mortgages have ALWAYS trended in the same direction of the 10/30 year treasury yields. The risk premium that is built in by the originators will fluctuate based on many factors but mostly on the secondary market. When we saw the secondary market lockup in August, that risk premium jumped way up. However memories are short and it went down after several weeks. Obviously the risk premium for a conforming loan that is FHA approved is the lowest. The premiums go up with jumbos, etc…
Now how low will rates go? Don’t know and don’t have a clue. Will they TREND in the same direction as the long term treasury yield? Absolutely. Will the risk premiums vary? Absolutely.
Your mission then is to find the best time, that is when the 10 or 30 year treasury yield is low AND the risk premium is low. Since you do not have much knowledge of the risk premium all you can do is monitor the 10 year.
Of course there is continuing bad news about foreclosures but for people to think mortgage rates will not budge while the 10 year yield plummets is not realistic.
Finally, long term rates do not just move lock step with the 10 year. As any shmuck in life knows, you get screwed on the way down and double screwed on the way up. In other words, lenders are sticky on the way down and they will not lower rates immediately even though the 10 year may go down. They may wait a day or a few days to make sure it doesnt spike back up, then they will lower them. Also many times one will not lower a rate until the other does, then they all do at once. Of course the SECOND the yield moves back up they all raise rates up immediately.
SD Realtor
ParticipantGuys –
HLS or Pasadena broker and mortgage professionals have more expert takes then I do. With that said long term mortgages have ALWAYS trended in the same direction of the 10/30 year treasury yields. The risk premium that is built in by the originators will fluctuate based on many factors but mostly on the secondary market. When we saw the secondary market lockup in August, that risk premium jumped way up. However memories are short and it went down after several weeks. Obviously the risk premium for a conforming loan that is FHA approved is the lowest. The premiums go up with jumbos, etc…
Now how low will rates go? Don’t know and don’t have a clue. Will they TREND in the same direction as the long term treasury yield? Absolutely. Will the risk premiums vary? Absolutely.
Your mission then is to find the best time, that is when the 10 or 30 year treasury yield is low AND the risk premium is low. Since you do not have much knowledge of the risk premium all you can do is monitor the 10 year.
Of course there is continuing bad news about foreclosures but for people to think mortgage rates will not budge while the 10 year yield plummets is not realistic.
Finally, long term rates do not just move lock step with the 10 year. As any shmuck in life knows, you get screwed on the way down and double screwed on the way up. In other words, lenders are sticky on the way down and they will not lower rates immediately even though the 10 year may go down. They may wait a day or a few days to make sure it doesnt spike back up, then they will lower them. Also many times one will not lower a rate until the other does, then they all do at once. Of course the SECOND the yield moves back up they all raise rates up immediately.
SD Realtor
ParticipantGuys –
HLS or Pasadena broker and mortgage professionals have more expert takes then I do. With that said long term mortgages have ALWAYS trended in the same direction of the 10/30 year treasury yields. The risk premium that is built in by the originators will fluctuate based on many factors but mostly on the secondary market. When we saw the secondary market lockup in August, that risk premium jumped way up. However memories are short and it went down after several weeks. Obviously the risk premium for a conforming loan that is FHA approved is the lowest. The premiums go up with jumbos, etc…
Now how low will rates go? Don’t know and don’t have a clue. Will they TREND in the same direction as the long term treasury yield? Absolutely. Will the risk premiums vary? Absolutely.
Your mission then is to find the best time, that is when the 10 or 30 year treasury yield is low AND the risk premium is low. Since you do not have much knowledge of the risk premium all you can do is monitor the 10 year.
Of course there is continuing bad news about foreclosures but for people to think mortgage rates will not budge while the 10 year yield plummets is not realistic.
Finally, long term rates do not just move lock step with the 10 year. As any shmuck in life knows, you get screwed on the way down and double screwed on the way up. In other words, lenders are sticky on the way down and they will not lower rates immediately even though the 10 year may go down. They may wait a day or a few days to make sure it doesnt spike back up, then they will lower them. Also many times one will not lower a rate until the other does, then they all do at once. Of course the SECOND the yield moves back up they all raise rates up immediately.
SD Realtor
ParticipantGuys –
HLS or Pasadena broker and mortgage professionals have more expert takes then I do. With that said long term mortgages have ALWAYS trended in the same direction of the 10/30 year treasury yields. The risk premium that is built in by the originators will fluctuate based on many factors but mostly on the secondary market. When we saw the secondary market lockup in August, that risk premium jumped way up. However memories are short and it went down after several weeks. Obviously the risk premium for a conforming loan that is FHA approved is the lowest. The premiums go up with jumbos, etc…
Now how low will rates go? Don’t know and don’t have a clue. Will they TREND in the same direction as the long term treasury yield? Absolutely. Will the risk premiums vary? Absolutely.
Your mission then is to find the best time, that is when the 10 or 30 year treasury yield is low AND the risk premium is low. Since you do not have much knowledge of the risk premium all you can do is monitor the 10 year.
Of course there is continuing bad news about foreclosures but for people to think mortgage rates will not budge while the 10 year yield plummets is not realistic.
Finally, long term rates do not just move lock step with the 10 year. As any shmuck in life knows, you get screwed on the way down and double screwed on the way up. In other words, lenders are sticky on the way down and they will not lower rates immediately even though the 10 year may go down. They may wait a day or a few days to make sure it doesnt spike back up, then they will lower them. Also many times one will not lower a rate until the other does, then they all do at once. Of course the SECOND the yield moves back up they all raise rates up immediately.
SD Realtor
ParticipantGuys –
HLS or Pasadena broker and mortgage professionals have more expert takes then I do. With that said long term mortgages have ALWAYS trended in the same direction of the 10/30 year treasury yields. The risk premium that is built in by the originators will fluctuate based on many factors but mostly on the secondary market. When we saw the secondary market lockup in August, that risk premium jumped way up. However memories are short and it went down after several weeks. Obviously the risk premium for a conforming loan that is FHA approved is the lowest. The premiums go up with jumbos, etc…
Now how low will rates go? Don’t know and don’t have a clue. Will they TREND in the same direction as the long term treasury yield? Absolutely. Will the risk premiums vary? Absolutely.
Your mission then is to find the best time, that is when the 10 or 30 year treasury yield is low AND the risk premium is low. Since you do not have much knowledge of the risk premium all you can do is monitor the 10 year.
Of course there is continuing bad news about foreclosures but for people to think mortgage rates will not budge while the 10 year yield plummets is not realistic.
Finally, long term rates do not just move lock step with the 10 year. As any shmuck in life knows, you get screwed on the way down and double screwed on the way up. In other words, lenders are sticky on the way down and they will not lower rates immediately even though the 10 year may go down. They may wait a day or a few days to make sure it doesnt spike back up, then they will lower them. Also many times one will not lower a rate until the other does, then they all do at once. Of course the SECOND the yield moves back up they all raise rates up immediately.
SD Realtor
ParticipantThis is only a guess…There could be many many reasons.
1 – Recall many mortgages have been packaged, sold, resold, etc… There could be restrictions that the underlying asset needs to be owner occupied.
2 – Becoming a landlord also means incurring liability. In some cases substantial liability.
3 – Sometimes, being a landlord can be a pain in the ass.
There are plenty more reasons I am sure. There may be for all I know plenty of lender owned properties that are being rented. However I honestly do not think that is the case.
SD Realtor
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