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joeyostjr
181 Posts |
 Posted - 05/29/2008 : 09:52:26 AM
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Rates are really heading up. My go to FHA company just adjusted 1 pt in price from yesterday and 1.5 over the last two. Bond is up big time. Today in the journal the lead story was questioning the Libor and how it is currently low balled. Weird times.....Sure liked the rates in the 5%'s.
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VVance
2489 Posts |
Posted - 05/29/2008 : 10:06:54 AM
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There is complete disconnect between Wall Street and what's truly going on. Housing market is on life support and rates are on the way up! Add the Dow Jones up over 100 right now.
Something has to give. Either the housing market is on the verge of a huge recovery or Wall Street is lying to us. |
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AGreene00
2820 Posts |
Posted - 05/29/2008 : 10:08:49 AM
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I have a customer with an ARM adjusting in June (no pre-pay, it was a conforming ARM). I've been telling this guy since December that he might want to go ahead and do the refi since you never know what rates are going to do. I remember speaking to him in January when we touched 5.00% on a 30 year fixed, but he was adamant that they would keep dropping. Even though we were at the lowest point we had seen in 3-4 years.
Yup, those customers know everything. |
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MortgageBoarder
4016 Posts |
Posted - 05/29/2008 : 10:13:40 AM
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I'd partially disagree. The "jumping on the bandwagon" on wall street is a pretty direct relation to the bond market today, and the last couple weeks. Surging equitable investments will always call for money to be pulled out of the fixed income market, especially when inflation is a growing concern. The housing market is on the verge of a recovery, how long of a recovery period, who knows?
quote:
Originally posted by VVance
There is complete disconnect between Wall Street and what's truly going on. Housing market is on life support and rates are on the way up! Add the Dow Jones up over 100 right now.
Something has to give. Either the housing market is on the verge of a huge recovery or Wall Street is lying to us.
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joeyostjr
181 Posts |
Posted - 05/29/2008 : 10:30:33 AM
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I agree with a little of everyones comments. The thing that keeps me on the fence of a recovery is Wall Street looks like they believe we have bottomed but it is what I see on a daily basis. 700 full doc clients that cant refi becuase of value or those pesky neg ams still floating out there. I think we are going to see another wave of defualts/foreclosures from people who look like super A paper borrowers now. A lot of refferals I have been getting look GREAT on paper but ready to explode with late mortgage payments and BK's.
Based upon inflation we should continue up on rates but I dont think conventional wisdom applies. Who knows what things will look like in a year.
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VVance
2489 Posts |
Posted - 05/29/2008 : 11:26:54 AM
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quote:
Originally posted by joeyostjr
I agree with a little of everyones comments. The thing that keeps me on the fence of a recovery is Wall Street looks like they believe we have bottomed but it is what I see on a daily basis. 700 full doc clients that cant refi becuase of value or those pesky neg ams still floating out there. I think we are going to see another wave of defualts/foreclosures from people who look like super A paper borrowers now. A lot of refferals I have been getting look GREAT on paper but ready to explode with late mortgage payments and BK's.
Based upon inflation we should continue up on rates but I dont think conventional wisdom applies. Who knows what things will look like in a year.
After just receiving a mid-day price change, it appears to me even more potential borrowers will be excluded from financing. Facinating that oil and gas prices are not being blamed for inflation and that plunging house prices play no role in determining inflation.
Will higher rates cause the price of oil to drop?
I could believe that Wall Street is selling the Kool-Aid but cannot believe they drink it.
I agree that there will be another wave of foreclosures and I'm disgusted at the "make sense" applications I keep getting which are impossible to write because of the new guidelines. |
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MortgageBoarder
4016 Posts |
Posted - 05/29/2008 : 11:37:21 AM
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LOL Steven what's wrong with Club sports?
quote:
Originally posted by v1uknow
quote:
Originally posted by VVance
quote:
Originally posted by joeyostjr
I agree with a little of everyones comments. The thing that keeps me on the fence of a recovery is Wall Street looks like they believe we have bottomed but it is what I see on a daily basis. 700 full doc clients that cant refi becuase of value or those pesky neg ams still floating out there. I think we are going to see another wave of defualts/foreclosures from people who look like super A paper borrowers now. A lot of refferals I have been getting look GREAT on paper but ready to explode with late mortgage payments and BK's.
Based upon inflation we should continue up on rates but I dont think conventional wisdom applies. Who knows what things will look like in a year.
After just receiving a mid-day price change, it appears to me even more potential borrowers will be excluded from financing. Facinating that oil and gas prices are not being blamed for inflation and that plunging house prices play no role in determining inflation.
Will higher rates cause the price of oil to drop?
I could believe that Wall Street is selling the Kool-Aid but cannot believe they drink it.
I agree that there will be another wave of foreclosures and I'm disgusted at the "make sense" applications I keep getting which are impossible to write because of the new guidelines.
I agreee with you but it is my understanding that energy is backed out of the inflation, I think also food, and the kool-aid comment I could not agree more but that statement might tell me you got a Kid in club soccer!
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NobleHouse
343 Posts |
Posted - 05/29/2008 : 12:35:42 PM
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| That's absolutely right v1uknow. Keep them off the pole lol I tell my friends that all the time especially the ones that recently had baby girls. |
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MortgageBoarder
4016 Posts |
Posted - 05/29/2008 : 1:13:17 PM
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HAHAHA that is classic Steve!! I agree, keep the kids focused and active in sports. I grew up in club sports, both my brother and sister are in Club Baseball, and my dad coaches one of San Diego's best Club Baseball teams.
It's funny hanging out with the parents at club games. I don't have any kids myself but you are right, lots of them drink the blue Kool Aid lol. |
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