What is beside mortgage rates?
Last week the rates were something like 4.5% very soon they are back up to 5.5% - why such a downward spike AND could it happen again soon?
Answers:
With the rule sticking it nose into banks business expect them to verbs unpredictable movements. Hopefully it will settle down a few months after Obama gets into office. But that depends on if he have any unexpected surprises.
Since the emergency for housing loans is down, the price of loans (the mortgage rate) is down. Most mortgage loans are going to refinances to people who purchased a home that they could afford. I do not know your present situation; but, no rate is a good deal if you cannot afford the underlying asset, i.e., residential housing.
Yes, this happen every day, multiple times a day.
Mortgage rates are resembling the stock market. When a loan is closed it is packaged up beside other loans of similar characteristics and sold to investors as Mortgage Backed Securities (MBS).
If there is a surplus of buyers for MBS the prices (rates) go down. If smaller amount buyers want to invest in MBS the prices (rates) go up.
I hope that made sense =) Source(s): me, mortgage broker/banker 6 years.
market fluctuations and they can walk down as fast as they can come up
Related Questions:
Current mortgage interest rate trends?
I am considering refinancing now. But if I wait six months, I will own time to do some remodeling that will definitely bring up the value of my house. This would fade my loan to value, hence no PMI payments....I however know nothing roughly speaking the current mortgage trends....
Answers:
With the rule sticking it nose into banks business expect them to verbs unpredictable movements. Hopefully it will settle down a few months after Obama gets into office. But that depends on if he have any unexpected surprises.
Since the emergency for housing loans is down, the price of loans (the mortgage rate) is down. Most mortgage loans are going to refinances to people who purchased a home that they could afford. I do not know your present situation; but, no rate is a good deal if you cannot afford the underlying asset, i.e., residential housing.
Yes, this happen every day, multiple times a day.
Mortgage rates are resembling the stock market. When a loan is closed it is packaged up beside other loans of similar characteristics and sold to investors as Mortgage Backed Securities (MBS).
If there is a surplus of buyers for MBS the prices (rates) go down. If smaller amount buyers want to invest in MBS the prices (rates) go up.
I hope that made sense =) Source(s): me, mortgage broker/banker 6 years.
market fluctuations and they can walk down as fast as they can come up
Related Questions:
Current mortgage interest rate trends?
I am considering refinancing now. But if I wait six months, I will own time to do some remodeling that will definitely bring up the value of my house. This would fade my loan to value, hence no PMI payments....I however know nothing roughly speaking the current mortgage trends....