MORTGAGE RATES HIT 4 MONTH HIGHS
I don’t think this was part of the Fed’s plan (via Zillow):
Mortgage rates for 30-year fixed mortgages rose this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 4.34 percent, up from 4.07 percent at this same time last week. This is the highest average rate reported on Zillow Mortgage Marketplace in 16 weeks.
The 30-year fixed mortgage rate steadily increased for the majority of the week, peaking at 4.35 percent on Monday before falling to the current rate.
“Not surprisingly, higher yields on 10-year treasury bonds – up more than 30 basis points in the past month – are creating ripples in the mortgage markets,” said Zillow Chief Economist Dr. Stan Humphries. “While the Federal Reserve expected a second round of quantitative easing to push yields down, or at least keep them low, the opposite appears to be happening. This trend has only been exacerbated in the past week when fears increased that the bond-buying program might be facing political challenges which ran counter to market expectations that the government would be in the marketplace.”
Source: Zillow
Yeah, that nasty surprise wreaked a little havoc on my workday yesterday…, though I think that if you are right about deflation, and a declining equities market, they could come back down in several months.
Unfortunately, by then so could the appraised value and then….phhht goes many a refi opportunity.
TPC,
ZH is reporting that State AGs may have reached a settlement on foreclosuregate, whatever.
If that’s the case, that could be HUGH fuel to an upcoming rally. just saying buddy.
This is a better case of QE2 unraveling than the stock market plunge today. It can not be a blunter slap on the face to Bernanke, and to the entire Fed board.
If you ask a high school kid why Bernanke would focus QE on the short end, not the long end, I bet his answer is Bernanke was for the bank bailout.
Is anyone on the TPC board really surprised by a double dip in housing or the Fed policies are failing?
If gold dips below $1k and silver below $20, time to buy the real stuff again.
Looks like the depression is back on the table, expect an announcement from the EU this week on Ireland bailout and a big 1 day move north in the markets. That’s the day to sell the rally and head for cover.
Ironically ireland helped bonds today more than qe2. Can’t really say fed failed here…their jawboning dropped mtg rates to 4.07 for crying out loud. There was a 2 month window to get financing like never in history.
Yeay for the 2 month Fed economic recovery!!!!!
I’m seeing an awful lot of people who are saying we should all go out and buy the dip. That worries me.
To get a mortgage from the banks is like to pull the teeth from a patient without anesthesia. Its’ IRRELEVANT how low the rate is. Go and try to get one yourself.
That depends of the borrower, the bank and the loan parameters.
Refinances and purchases are getting done, but they do take longer, since there are no “stated anything” loans anymore.
The difference between now, and 2006, is that we have to tell a lot more people, “No, you cannot have a loan.”
It wasn’t pleasant to do it then, and it isn’t now.
I wish that FHA (or Fannie Freddie) would agree that a borrower has the ability to pay a loan if they can demonstrate that they HAVE been paying the loan, at a higher rate for 3 years.
A lot of self employed folks are finding they cannot get a refinance, even with great credit, as their tax returns show too little income. Yet, they have have been PAYING the loan, at a higher rate of interest for years.
It defies logic.
The media hasn’t helped, by calling all stated income loans “liar loans”. It only suits their purpose, not the public’s interest.
Good luck, Pete.