I’m seeing via various sources that interest rates are moving up. Today I’m reading that 30 yr fixed rates are around 5.75%. The yield on 10 yr bonds has been increasing lately.
Have a good day.
Interest Rate update
Posted by S-Crow on February 14th, 2008 at 11:38 AM · 7 Comments
Categories: News
Tags: escrow, Interest Rates, lending, mortgages
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7 responses so far ↓
1
vboring
// Feb 14, 2008 at 12:15 pm
something i haven’t seen discussed about the re-definition of Jumbo by our gov’t increasing the cap on conforming loan is what impact it will have on conforming interest rates.
it seems that changing the loan limits will increase the risk associated with conforming loans and force the banks to raise their interest rates.
so, the change will help houses that formerly were jumbo and now conform, but won’t it hurt the market in general?
2
afferent input
// Feb 14, 2008 at 12:17 pm
Word is that lenders need to increase rates across the board (mortgages, autos, credit cards) because they are insolvent! Too many bad bets on CDOs and other worthless pieces of paper. This despite the mega drops recently in the FFR.
The Big Picture has more:
http://bigpicture.typepad.com/comments/2008/02/quote-of-the–3.html
The credit crunch continues…
3
David McManus
// Feb 14, 2008 at 1:11 pm
And in other news…..
http://biz.yahoo.com/ap/080214/congress_recession_threat.html
4
Rhonda Porter
// Feb 14, 2008 at 1:49 pm
It’s real hard to say how the “new conforming” rates will be priced. I’m sure there will be an add to rate, it’s just hard to say how much. My guess is that it could be as low as 0.25% to rate to 1.00% to rate (which would have little benefit). Part of the “stimulus” package is that fannie/freddie can go back to jumbo loans from July 2007 to purchase, thus freeing credit lines which are now holding loans $417,001 plus.
S-Crow, I’m receiving new rate sheets for the worst this afternoon.
5
Rhonda Porter
// Feb 14, 2008 at 4:57 pm
Today was stinky for rates compared to recent history…I mean long term history, rates are fine. It’s so easy to get used to low 5’s for the 30 year and now we’re up about a 1%.
Tomorrow should be interesting (as every day has been lately to me) with what rates will do…one thing is for certain, this is the most volatile time for rates that I’ve witnessed in my 8 years in the mortgage biz.
6
Scotsman
// Feb 14, 2008 at 8:50 pm
http://cramergeddon.ytmnd.com/
7
Scotsman
// Feb 14, 2008 at 9:10 pm
The money/liquidity is rapidly disappearing, and rates will be heading up in the short term. But, as the economy tanks they will come back down, probably to new all time lows.
Here’s one example of how tight things are getting- from Bloomberg, today:
Bank of America Corp. estimated in a report that 80 percent of all auctions of bonds sold by cities, hospitals and student loan agencies were unsuccessful yesterday. That may mean as much as $20 billion of bonds failed to find buyers, based on the $15 billion to $25 billion of auction-rate bonds scheduled for bidding daily, according to Alex Roever, a JPMorgan Chase & Co. fixed income analyst.
“We are kind of in uncharted territory right now,” said Anne Kritzmire, a managing director for closed-end funds at Nuveen Investments in Chicago.
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