Mortgage rates one day lo 0.5% perigaya

[tom bhayya]

34 minutes ago, JambaKrantu said:

For people trying to understand why the mortgage rates are going up while the Feds are cutting the interest rates, please read the article below.

Basically your mortgages are bundled into something called mortgage backed securities and sold to investors. Right now, the market is flooded with these mortgage based securities and the investors don't want to buy them.

Next week Fed will step in and start buying these mortgage backed securities to ease the market and create more demand. Then the interest rates will start dropping again..

https://www.ft.com/content/a8d5607c-6571-11ea-b3f3-fe4680ea68b5

Recipe for disaster 

[kevinUsa]

1 minute ago, tom bhayya said:

Recipe for disaster 

Last time these securities bombed and led to the collapse

[tom bhayya]

3 minutes ago, kevinUsa said:

Last time these securities bombed and led to the collapse

Yeah 

[JambaKrantu]

8 minutes ago, kevinUsa said:

Last time these securities bombed and led to the collapse

Tines are different now. These things bomb when the underlying mortgages default.. 2003 to 2009 income sarigga chudakunda they approved a lot of loans.. Post 2009 Mortgage approvals have become very strict. Torture chestunnaru for approvals.. This is more like a demand vs supply thing instead of underlying issues..

[HugoStrange]

1 hour ago, JambaKrantu said:

For people trying to understand why the mortgage rates are going up while the Feds are cutting the interest rates, please read the article below.

Basically your mortgages are bundled into something called mortgage backed securities and sold to investors. Right now, the market is flooded with these mortgage based securities and the investors don't want to buy them.

Next week Fed will step in and start buying these mortgage backed securities to ease the market and create more demand. Then the interest rates will start dropping again..

https://www.ft.com/content/a8d5607c-6571-11ea-b3f3-fe4680ea68b5

Baga cheppav kaka, thank you.

[kevinUsa]

18 minutes ago, JambaKrantu said:

Tines are different now. These things bomb when the underlying mortgages default.. 2003 to 2009 income sarigga chudakunda they approved a lot of loans.. Post 2009 Mortgage approvals have become very strict. Torture chestunnaru for approvals.. This is more like a demand vs supply thing instead of underlying issues..

If some idiot is purchasing the bond. They will start easing the process of giving.loans.This is the case when upsidedown happens where the mortgage value is more than the actual price of the house

[JambaKrantu]

7 minutes ago, kevinUsa said:

If some idiot is purchasing the bond. They will start easing the process of giving.loans.

You are wrong, The party buying the bond and the party issuing the mortgages are different.  Also the investors purchase the bonds after mortgages are issued, they don't have any control over how the mortgages are issued..

[JambaKrantu]

7 minutes ago, kevinUsa said:

This is the case when upsidedown happens where the mortgage value is more than the actual price of the house

Ippudunna paristhithi lo idi jarige chance ledu.. A 3rd party appraiser has to apparaise the house and the loan will never be approved for more than the appraised value.. There are enough checks and balances in the mortgage approval process for these kind of things..

[kevinUsa_banned3]

On 3/11/2020 at 7:37 PM, Sizzler said:

I was offered 2.825 with 0 closing costs 2 days ago but 3.125 today.

oh wow 

[karna11]

Tuesday nundi emina drop avvocheemo

[JambaKrantu]

53 minutes ago, karna11 said:

Tuesday nundi emina drop avvocheemo

Wednesday afternoon rate cut announcement tarvata you can see the rates fall..

[Sizzler]

This is what one of the lenders told me regarding the mortgage prices going up:

“Some financial analyst say that the recent huge volume of mortgages overwhelmed the buyers of mortgage back securities (MBS).  Supply and demand came in to play which dramatically slowed down the purchase of MBSs which pushed up the interest rates. 

At this time, interest rates don't seem to be following the usual mortgage rate indicators (i.e. bond market).  “

[kevinUsa]

6 hours ago, JambaKrantu said:

Ippudunna paristhithi lo idi jarige chance ledu.. A 3rd party appraiser has to apparaise the house and the loan will never be approved for more than the appraised value.. There are enough checks and balances in the mortgage approval process for these kind of things..

Ok..

Than we are in better situation

 

[karna11]

1 hour ago, JambaKrantu said:

Wednesday afternoon rate cut announcement tarvata you can see the rates fall..

Yehaa, 17th kada fed rate cut, you after 17th onwords