MTG Interest Rates....

[Saleen781]

We have two dynamics at work:

1. Mideast unrest and a worsening stock market (an over improved stock market and profit taking). This means the US Treasury Market and Mortgage Bond market is a safe haven for investors and thus we have what is called “a flight to quality”. Rates have gotten better.

2. We have increasing oil and gas prices and decreasing value of the dollar. The value of the dollar is being pressured by rising oil prices. Remember, the dollar is the currency the world’s oil producers use to sell their oil. I also think as we keep printing money to pay for the debt this will exacerbate the problem. All this is inflationary and bad for interest rates.

Right now #1 is winning. For how long is the million dollar question. I guess as long as Libyan strong man Colonel Mouammar Qaddafi stays in Libya, the unrest will stay. Libya has vast oil reserves and the country is basically in a civil war. Qaddafi has even called for the destruction of some of the oil wells. He knows he could be facing a small cell in “GITMO” if he loses. Sounds like Saddam towards the end.

Eventually, I think the markets will return to the fundamentals of rising energy and food costs, a huge national debt and incredibly some job creation and I think this will drive rates back up.

If your borrower likes the rate, I sure would convince them to lock while the “gettin- is- good”.

From a very educated secondary hedge manager.

[jw33]

http://www.glo.texas.gov/cf/vlb-interest/index.cfm

[SVT Lurch]

Treasuries have been heading down which mean rates usually follow.

How long can you actually "lock" a rate for? Last week the best 30 year I found was a 5% no points.

Most rates are quoted on a 30 day lock. We have investors that will go up to two years out, but the (upfront) fees are outrageous.

[dblack1]

Most rates are quoted on a 30 day lock. We have investors that will go up to two years out, but the (upfront) fees are outrageous.

Do I have to continually reapply every 30 days? I'm still house hunting and have never done a conventional home loan.

[robert]

Do I have to continually reapply every 30 days? I'm still house hunting and have never done a conventional home loan.

If your already pre-approved then no,
% rates are locked for 30 days, depending on lender they can be
extended for nominal fee, your better off checking with your lender.. G/L

[slow99]

We have two dynamics at work:

1. Mideast unrest and a worsening stock market (an over improved stock market and profit taking). This means the US Treasury Market and Mortgage Bond market is a safe haven for investors and thus we have what is called “a flight to quality”. Rates have gotten better.

2. We have increasing oil and gas prices and decreasing value of the dollar. The value of the dollar is being pressured by rising oil prices. Remember, the dollar is the currency the world’s oil producers use to sell their oil. I also think as we keep printing money to pay for the debt this will exacerbate the problem. All this is inflationary and bad for interest rates.

Right now #1 is winning. For how long is the million dollar question. I guess as long as Libyan strong man Colonel Mouammar Qaddafi stays in Libya, the unrest will stay. Libya has vast oil reserves and the country is basically in a civil war. Qaddafi has even called for the destruction of some of the oil wells. He knows he could be facing a small cell in “GITMO” if he loses. Sounds like Saddam towards the end.

Eventually, I think the markets will return to the fundamentals of rising energy and food costs, a huge national debt and incredibly some job creation and I think this will drive rates back up.

If your borrower likes the rate, I sure would convince them to lock while the “gettin- is- good”.

From a very educated secondary hedge manager.

What is a secondary hedge manager?

[SVT Lurch]

Do I have to continually reapply every 30 days? I'm still house hunting and have never done a conventional home loan.

No, you can't lock the rate until you have a house picked out (and under contract). Typically you contract with a close date 30 days in the future so you lock for 30 days. Longer contract period means longer lock (and higher rate) or you wait and "float" the rate trying to get a lower rate closer to your closing date.

If your already pre-approved then no,
% rates are locked for 30 days, depending on lender they can be
extended for nominal fee, your better off checking with your lender.. G/L

There are lots of different lock terms, 30 day locks are just the most common because that is typically how long the process takes from contract to closing/funding.

What is a secondary hedge manager?

If he's talking about the position I think he is, it's the "lock desk". The person/people that watch the market all day, issue rate sheets, and actually lock the loan with the investor (or trade the actual Mortgage Backed Securities on the open market if it's a big enough company). Because that's their sole job (watching and trading the market) they typically have the best idea of anyone in the company where rates are going.