Reply by Bear900/CA on 8/16/13 11:44pm
Msg #480775
Yep, insane week for interest rates!
The market perception of the Feds "tapering off" buying mortgage backed securities (MBS) has caused mortgage related bonds to tank.
Bond base points (bps) are inversely related to mortgage rates so when they go down 183 bps, interest rates skyrocket. This in just three days as Monday started fairly normal. You can bet LO stomachs are churning; and the poor customers!
The reality is the Feds haven't tapered off purchasing MBS yet. If it's this crazy with perception, think what will happen when reality kicks in and they do taper off.
Don't get caught in the door-way!
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Reply by 101livescan on 8/17/13 8:30am
Msg #480795
We're in for different kind of lending going forward
My last signing last night for an elderly borrower, owns a couple of restaurants in touristy towns. Town was wild with visitors from all over the world. I was lucky to find a parking spot right in front of his restaurant.
Gentleman was signing a 10yr I/O fixed, amortized for 40 years with Union Bank. I think we'll see more of these in the coming months/years. I also had a couple of REFI loans which have been in the pipeline for sometime, so rates were low.
Now that "values" are increasing, there are some HOs who now qualify, albeit rates are higher, because their LTV ratio is higher. A lot of people paying off CC debt or second mortgage, taking cash out, etc.
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