Rapid Increase In Mortgage Rates

Business with Greg · 05-29-2009, 08:58 AM

If you did not know then now you do. Wednesday the bubble burst on mortgage rates. When the feds announced that they would purchase up to 1.25 trillion of bad loans the intention was to open up lending and decrease rates. The belief was the treasury, bonds, and note prices would all decrease. For a little over 2 months we saw great interest rates. 4% and some as low as 2% or 3% on ARM loans.

Wednesday was the 4th day straight for increases in these key rates and that day those prices exceeded the day before the feds made the announcement. Most lenders raised rates by as much as 1% in 1 day.

If your customers were not locked you should have them check on their rate now.

These low rates were to boost the real estate market which is a key to our economic recovery. I wonder what the next move will be.

RESteve · 05-29-2009, 09:12 AM

Thanks for the update. I'm really starting to see the market come around; at least the news stations have slowed in reporting the doom & gloom about the economy.

Business with Greg · 05-29-2009, 09:58 AM

I agree. It is getting better in pockets in the US. Some markets are reporting increased sales and home prices.

I think the general public is tired of hearing bad news. We have been pounded for quite some time with it. The press seems to be targeting more good news than in the past 2 years. I keep hearing a story reporting the economy is starting to hit an upward direction or that the down turn is slowing.

Inflation seems unavoidable with all of these government dollars being spent. It seems to me that the effects will be more dramatic than ever seen before.

Justin Havre · 05-29-2009, 11:06 AM

It is about time we hear some good news from you guys.

Things are pretty good up here in Canada and some lenders were offering 5 year fixed mortgages at 3.54%
How can you go wrong with that rate?

Calgary Agent · 06-04-2009, 07:06 PM

Canadian mortgage rates (longer term Fixed) have starting climbing as a result of money abandoning debt for equity markets (among other things):

Why Mortgage Rates are Rising

Justin Havre · 06-04-2009, 10:45 PM

I think this will make some sense of urgency to the people that have pre-approvals for lower rates which is good for us.

Calgary Agent · 06-05-2009, 12:17 AM

Quote:

Originally Posted by Justin Havre

I think this will make some sense of urgency to the people that have pre-approvals for lower rates which is good for us.

It's all good Justin

. You can tell people for months what's going to happen, but until the media gets their attention many tend to ignore common sense. This, combined with today's forecast by Goldman Sachs of oil rising to $85/bbl by years end, I'm looking for a great 2nd half of the year.

http://twurl.nl/gh8hjw

escapeso · 06-08-2009, 03:46 AM

We have seen a few panicked buyers. Basically now that rates are rising people that have been on the fence want to buy before rates go up too much more.

I expect that rates will be higher in three months from where they stand today but I have been wrong before.

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