Can someone narrate me why within the world mortgage rates hold on to going up??
Answers:
Inflation.
Investors today are getting a NEGATIVE return on their money.
2 year note yield around 2.5%
Inflation around 10%
Let's see you make 2.5% but your losing 10% for a NET return of MINUS 7.5%
Bonds are a lousy investment today with everything going up almost double digits.
Gas, food, electricity, postage, tires, entertainment, condition care, etc.
Fears of inflation. Increased default risk surrounded by mortgage backed securities. Those would be the two primary reasons. Our ARM rates are down. Some of them are convertible to fixed rates inside the first 36 months so folks that believe that rates will come down again can enjoy a lower rate today with the capacity to convert to a fixed rate program later once the market normalize.
Good luck. Source(s): 7 years mortgage lending experience.
inflationary concerns in the reduction and risk spread is too high.
they always walk up and down - they already bottomed out months ago - time to go back up and the testimonial to get a mortgage are tougher than they were 6 months ago also - adjectives because of the sub-prime mess , which is basically the banks' fault for giving mortgages t empire who really couldn;t afford them when the rates adjusted on their adjustable mortgages.
All those greedy people that bought 350k houses hoping to sell them for 600k within 2 years then walking away from them when they went to their solid price of 200k 2 years later.
So basically you can blame everyone that have a forclosure between 2006 and now. And you can also put extra blame on those people that vandalize their homes when they were force out because they couldnt pay hoping to "guide the bank a lesson" Well the jokes on them. Higher interest rates for everyone.
Others might update you to blame the banks for making those loans especially if they were one of the associates that went into forclosure.
Because we are paying for adjectives the mortgages that have defaulted. There are closely less lenders out there to purloin mortgages & everyone is at risk. The market sucks right now, surrounded by about every aspect.
The mortgage crisis caused lenders to reformulate their risk factor with various borrowers. Additionally, inflation is cause rates to go up. After hitting an all time low, the one and only way they can go is up (which rates are still on the lower side historically)
they are not going up. They are down.
I can prove it.
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