Posted by Pro Mobile Notary on 2/14/13 1:30pm
Msg #455840

Sequestration Coming March 1st & The Refinance Market

I’ve seen many posts lamenting about declining signing orders. Wells Fargo Bank executives were lamenting yesterday about the declining refinancing activity and the increase of purchase transactions being insufficient to make up the shortfall.

It appears that there is no way to avert the implementation of “Sequestration” on March 1. This will likely push stock prices down and credit instrument prices higher. This in turn should push home loan rates lower as sequestration will depress economic activity in this country by a projected 1.5% to the GDP and that tends to push down home loan rates.

I see a viable scenario that we will see a renewal of robust refinancing activity beginning in late spring or early summer. Enjoy the current lull in business (if you are experiencing one) as I see it it getting crazy busy again this summer.

Reply by Resilient/MD on 2/14/13 1:34pm
Msg #455841

Is the the National Forecast or just California?

Reply by Pro Mobile Notary on 2/14/13 3:01pm
Msg #455867

National forecast.

Reply by MW/VA on 2/14/13 1:41pm
Msg #455842

I don't know about that. I've been signing lots of WF loans

& we're getting info that loans are so backlogged due to volume of refi's in process. I'm sure the economic forecast will affect this biz, but I actually thought the movement was to get more people qualified to refi.

Reply by Resilient/MD on 2/14/13 1:48pm
Msg #455844

Re: I don't know about that. I've been signing lots of WF loans

Me too and alot of Citibank & PNC.

Reply by Pro Mobile Notary on 2/14/13 3:05pm
Msg #455869

Re: I don't know about that. I've been signing lots of WF loans

I am an economist that has been following this stuff since the late 1960s beginning at Wall Street brokerages. I have been doing interest rate forecasting, economic analysis and newsletter publishing on this subject for 25+ years. I think I am a bit better versed in this subject that you might be. I have also been writing a weekly newsletter for a division of Wells Fargo Bank on this subject for the past 13 years.They seem to think I know what I am talking about too.

Reply by MW/VA on 2/14/13 6:57pm
Msg #455904

I never said you didn't know what you're talking about.

I'm just saying biz is good for refi's right now.

Reply by BBuchler/CA on 2/14/13 2:49pm
Msg #455862

My daughter is looking for a home in So. Cal. A lot of homes are being taken off the market as they go thru the loan modification process. Refi's hard to come by as home values are not up to loan values here.

Which is why I try to do as much general notary work as I can. It's usually cash and usually quick. Trust docs - get in with lawyers who do these. Hospitals. Banks (many do not have notaries on staff).

Reply by Resilient/MD on 2/14/13 2:52pm
Msg #455864

Thanks for the info. I will look into that.

Reply by Pro Mobile Notary on 2/14/13 3:07pm
Msg #455870

I have clients that flip homes for a living. One of them has turned over 1,600 units in the past ten years. He is active in TX and CA. He has been having difficulties finding "deals"for a while now. All the bargains are gone.