Posted by mnotaryca on 3/20/06 12:39am
Msg #106882

interest rates up, business slow?

I heard from a bank president today that on the 31st the feds will be meeting an interest rates will be going up. He in turn told me that business will be slow for signing agent and the market in a whole. What do you think???

Reply by BrendaTx on 3/20/06 12:41am
Msg #106883

For Texas - Refis are 95% gone. Purchases and rev morts will be what sustains the NSAs in this state. Helocs plus the above will be your market...imho.

Reply by PAW on 3/20/06 5:57am
Msg #106888

Actually, the Central Bank is meeting from 3/28 through 3/30. What the result of the expected rise in the rate will be, is still anyone's guess. Just this past week, mortgage rates have declined for some programs and risen for others. Many analysts think that the Fed will continue to raise rates, but stop at the 5% mark. (http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B5829D3CE%2D6B43%2D4123%2D933D%2D94D4FD9F13FA%7D&siteid=mktw&dist=)

FYI - Here are some interesting links about the Fed and interest rates:

"How the Fed sets interest rates" -> http://www.usatoday.com/money/economy/fed/explainer.htm

"Five key indicators determine Fed's interest rate hikes" -> http://biz.yahoo.com/usat/060307/13445566.html?.v=2

"Open Market Operations" -> http://www.federalreserve.gov/fomc/fundsrate.htm

"Bankers see an end to rate hikes soon" -> http://money.cnn.com/2006/03/17/news/economy/fed_bankers.reut/index.htm

"Rate Watch" -> http://realtytimes.com/rtnews/rtcpages/20060316_ratewatch.htm

Reply by Frank Calderone on 3/20/06 6:26am
Msg #106891

Closing have been dead here (PA) for the past three months.

Reply by Teddog_CO on 3/20/06 7:01am
Msg #106898

I've been seeing a lot of people getting rid of their ARM's and doing a lot of refi's (getting rid of credit card debt.) There is so much new construction here and military families everything is just exploding. As far as interest rates go stock market shows are saying that rates will not go up much more?? it would be nice to have a crystal ball. Personally I think that Americans are so accustomed to having what they want and being able to purchase everything so easily they are not willing to accept less. Even experts have difficulty "calling" this one - regarding the outcome of these interest rate increases and it's effects on the economy. You just can't keep Uping interest rates, cost of living and not do something about employment or lack there-of. Something has got to give.

You have to learn something from what's going on in the world in general-this morning on the news the youth of France let their feels be known RE: their jobs- English youth RE: their jobs and war. Food for thought. This is a whole New generation that is Not willing to go without and they expect answers.

Just my opinion.

Reply by ML/PA on 3/20/06 7:12am
Msg #106899

I am in NE PA and I have been really busy with closings. I end up turning down almost as many as I take. So far this year it's been great but we all know that can change at any time. Hope business picks up for you!

Reply by Beth/MD on 3/20/06 7:33am
Msg #106914

I haven't found a decrease in business, but I have remained pretty steady so far. The end of the month will tell me a lot.

Reply by Teddog_CO on 3/20/06 8:27am
Msg #106950

Same here Beth. I've been very busy, but like you say "the end of the month will tell me a lot." Also, if the gas prices keep going up that's going to "boot" a lot of the lowballers off the playing field. They have been working for "peanuts" and will not be able to get a higher fee.

Reply by MaryP/PA on 3/20/06 8:54am
Msg #106962

ML - what part of NE PA are you in? I'm in Bradford County.

Reply by ML/PA on 3/20/06 1:05pm
Msg #107032

I am in Luzerne County.

Reply by MaryP/PA on 3/20/06 8:53am
Msg #106960

Frank - what part of PA are you in? I'm in NE PA, Bradford County.

Reply by Beth/MD on 3/20/06 1:08pm
Msg #107035

My question is not just how will higher rates affect us but what about that new credit scoring system I read about? If someone with a Fico of 750 will now only be considered a fair risk does that mean we'll see less refi's, etc. or more Subprime?