Comments on: Interest Rate update http://seattlebubble.com/blog/2008/02/14/interest-rate-update/ local real estate news, statistics, and commentary without the sales spin. Fri, 19 Mar 2010 01:08:54 -0700 http://wordpress.org/?v=2.9.2 hourly 1 By: Scotsmanhttp://seattlebubble.com/blog/2008/02/14/interest-rate-update/#comment-41165 Scotsman Fri, 15 Feb 2008 05:10:40 +0000 http://seattlebubble.com/blog/2008/02/14/interest-rate-update/#comment-41165 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.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('41165','Scotsman',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('41165','Scotsman','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. \r\n\r\nHere\'s one example of how tight things are getting- from Bloomberg, today:\r\n\r\nBank 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.\r\n\r\n\"We are kind of in uncharted territory right now,\" said Anne Kritzmire, a managing director for closed-end funds at Nuveen Investments in Chicago.',''); return false;">Quote</a></div> 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.

Reply – Quote
]]> By: Scotsmanhttp://seattlebubble.com/blog/2008/02/14/interest-rate-update/#comment-41162 Scotsman Fri, 15 Feb 2008 04:50:47 +0000 http://seattlebubble.com/blog/2008/02/14/interest-rate-update/#comment-41162 http://cramergeddon.ytmnd.com/<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('41162','Scotsman',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('41162','Scotsman','http:\/\/cramergeddon.ytmnd.com\/',''); return false;">Quote</a></div> http://cramergeddon.ytmnd.com/
Reply – Quote
]]> By: Rhonda Porterhttp://seattlebubble.com/blog/2008/02/14/interest-rate-update/#comment-41127 Rhonda Porter Fri, 15 Feb 2008 00:57:50 +0000 http://seattlebubble.com/blog/2008/02/14/interest-rate-update/#comment-41127 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.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('41127','Rhonda Porter',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('41127','Rhonda Porter','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%. \r\n\r\nTomorrow 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.',''); return false;">Quote</a></div> 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.

Reply – Quote
]]> By: Rhonda Porterhttp://seattlebubble.com/blog/2008/02/14/interest-rate-update/#comment-41102 Rhonda Porter Thu, 14 Feb 2008 21:49:27 +0000 http://seattlebubble.com/blog/2008/02/14/interest-rate-update/#comment-41102 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.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('41102','Rhonda Porter',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('41102','Rhonda Porter','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. \r\n\r\nS-Crow, I\'m receiving new rate sheets for the worst this afternoon.',''); return false;">Quote</a></div> 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.

Reply – Quote
]]> By: David McManushttp://seattlebubble.com/blog/2008/02/14/interest-rate-update/#comment-41092 David McManus Thu, 14 Feb 2008 21:11:25 +0000 http://seattlebubble.com/blog/2008/02/14/interest-rate-update/#comment-41092 And in other news.....http://biz.yahoo.com/ap/080214/congress_recession_threat.html<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('41092','David McManus',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('41092','David McManus','And in other news.....\r\n\r\nhttp:\/\/biz.yahoo.com\/ap\/080214\/congress_recession_threat.html',''); return false;">Quote</a></div> And in other news…..

http://biz.yahoo.com/ap/080214/congress_recession_threat.html

Reply – Quote
]]> By: afferent inputhttp://seattlebubble.com/blog/2008/02/14/interest-rate-update/#comment-41082 afferent input Thu, 14 Feb 2008 20:17:45 +0000 http://seattlebubble.com/blog/2008/02/14/interest-rate-update/#comment-41082 Word is that lenders need to increase rates across the board (mortgages, autos, credit cards) because they are <i>insolvent</i>! 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.htmlThe credit crunch continues...<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('41082','afferent input',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('41082','afferent input','Word is that lenders need to increase rates across the board (mortgages, autos, credit cards) because they are <i>insolvent<\/i>! Too many bad bets on CDOs and other worthless pieces of paper. This despite the mega drops recently in the FFR. \r\n\r\nThe Big Picture has more:\r\n\r\nhttp:\/\/bigpicture.typepad.com\/comments\/2008\/02\/quote-of-the--3.html\r\n\r\nThe credit crunch continues...',''); return false;">Quote</a></div> 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…

Reply – Quote
]]> By: vboringhttp://seattlebubble.com/blog/2008/02/14/interest-rate-update/#comment-41080 vboring Thu, 14 Feb 2008 20:15:19 +0000 http://seattlebubble.com/blog/2008/02/14/interest-rate-update/#comment-41080 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?<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('41080','vboring',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('41080','vboring','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.\r\n\r\nit seems that changing the loan limits will increase the risk associated with conforming loans and force the banks to raise their interest rates.\r\n\r\nso, the change will help houses that formerly were jumbo and now conform, but won\'t it hurt the market in general?',''); return false;">Quote</a></div> 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?

Reply – Quote
]]>