Comments on: Mortgage Rates http://rireb.wordpress.com/2007/04/10/mortgage-rates/ Just another WordPress.com weblog Wed, 18 Nov 2009 06:06:27 +0000 http://wordpress.com/ hourly 1 By: Paulb http://rireb.wordpress.com/2007/04/10/mortgage-rates/#comment-178 Paulb Thu, 12 Apr 2007 15:43:20 +0000 http://rireb.wordpress.com/2007/04/10/mortgage-rates/#comment-178 Rates are up across the board. From 5.09 to 5.29. thats a big jump... Rates are up across the board. From 5.09 to 5.29. thats a big jump…

]]> By: uncertain_buyer http://rireb.wordpress.com/2007/04/10/mortgage-rates/#comment-132 uncertain_buyer Wed, 11 Apr 2007 03:50:45 +0000 http://rireb.wordpress.com/2007/04/10/mortgage-rates/#comment-132 I just got notice today that Mortgage rates are going up at BMO. I just got notice today that Mortgage rates are going up at BMO.

]]> By: Jim http://rireb.wordpress.com/2007/04/10/mortgage-rates/#comment-131 Jim Wed, 11 Apr 2007 03:28:24 +0000 http://rireb.wordpress.com/2007/04/10/mortgage-rates/#comment-131 Given that rates went up .25 today whilst banks are scrambling for business, I would say mortgage rate risk is all to the up side. I would therefore conclude in the face of rising inventory, and falling sales, real estate prices are heading down. Forget about the lack of economic analysis which prevails in the RE sales force, and amongst buyers, a .25 rate increase on a 4.99% 5 year mortgage will be noticed. As real estate sales enter their cooling season in July and August, and rates climb with inventory-good night. Given that rates went up .25 today whilst banks are scrambling for business, I would say mortgage rate risk is all to the up side. I would therefore conclude in the face of rising inventory, and falling sales, real estate prices are heading down. Forget about the lack of economic analysis which prevails in the RE sales force, and amongst buyers, a .25 rate increase on a 4.99% 5 year mortgage will be noticed. As real estate sales enter their cooling season in July and August, and rates climb with inventory-good night.

]]> By: Moneyfromasia http://rireb.wordpress.com/2007/04/10/mortgage-rates/#comment-130 Moneyfromasia Wed, 11 Apr 2007 03:28:12 +0000 http://rireb.wordpress.com/2007/04/10/mortgage-rates/#comment-130 Where does a 20 bases point hike take the rates to? Where does a 20 bases point hike take the rates to?

]]> By: Snick http://rireb.wordpress.com/2007/04/10/mortgage-rates/#comment-129 Snick Wed, 11 Apr 2007 02:28:11 +0000 http://rireb.wordpress.com/2007/04/10/mortgage-rates/#comment-129 Blueskies, The tipping point is already here. There will be no "Spring bounce", IMO. Things are going to be worse from now on than many people expect. Blueskies,

The tipping point is already here. There will be no “Spring bounce”, IMO. Things are going to be worse from now on than many people expect.

]]> By: blueskies http://rireb.wordpress.com/2007/04/10/mortgage-rates/#comment-128 blueskies Wed, 11 Apr 2007 01:11:26 +0000 http://rireb.wordpress.com/2007/04/10/mortgage-rates/#comment-128 <i>However in the Vancouver case I think the bubbliness is due in many cases to what Shiller calls irrational exhuberance: here more than in many other places it seems that herd behavior is dominant and people act on impulse.</i> exactly! the only thing I see holding up prices is psychology, no fundamentals to be seen. ...and i know this can change very rapidly, now what will be the tipping point..... a 20 basis point rate hike? However in the Vancouver case I think the bubbliness is due in many cases to what Shiller calls irrational exhuberance: here more than in many other places it seems that herd behavior is dominant and people act on impulse.

exactly! the only thing I see holding up prices is psychology, no fundamentals to be seen.

…and i know this can change very rapidly, now what will be the tipping point….. a 20 basis point rate hike?

]]> By: Moneyfromasia http://rireb.wordpress.com/2007/04/10/mortgage-rates/#comment-127 Moneyfromasia Wed, 11 Apr 2007 00:53:31 +0000 http://rireb.wordpress.com/2007/04/10/mortgage-rates/#comment-127 VHB do you know where Freako went? Lets ask Freako which way he thinks rates will go...... I bet he's got a girlfriend now and has no time for blogs! VHB do you know where Freako went?

Lets ask Freako which way he thinks rates will go……

I bet he’s got a girlfriend now and has no time for blogs!

]]> By: dignanmaplethorpe http://rireb.wordpress.com/2007/04/10/mortgage-rates/#comment-126 dignanmaplethorpe Wed, 11 Apr 2007 00:05:29 +0000 http://rireb.wordpress.com/2007/04/10/mortgage-rates/#comment-126 Rob Have you noticed we kind of look alike? How many properties do you manage? Rob

Have you noticed we kind of look alike? How many properties do you manage?

]]> By: domus aurea http://rireb.wordpress.com/2007/04/10/mortgage-rates/#comment-125 domus aurea Tue, 10 Apr 2007 23:51:16 +0000 http://rireb.wordpress.com/2007/04/10/mortgage-rates/#comment-125 I should also add that real lending rates depend on inflation, which is apparently perking up. So the real cost of lending should not be too bad right now. If you get a 6% nominal rate, with inflation running at 2.5%, it means that you are just paying 3.5% real. Historically a pretty average number, not too high and not too low. Small changes one way or the other should not have dramatic effects (apart from those careless people who borrowed to the brim and have no buffer savings). I personally think that lending rates are important in a highly leveraged market like real estate. However in the Vancouver case I think the bubbliness is due in many cases to what Shiller calls irrational exhuberance: here more than in many other places it seems that herd behavior is dominant and people act on impulse. Shiller said not long ago that vancouver was, in his opinion, the most overpriced market in North-America. An overstatement? Who knows.....personally I don't think he has anything to gain from making this statement, so I trust his judgement. I should also add that real lending rates depend on inflation, which is apparently perking up. So the real cost of lending should not be too bad right now.

If you get a 6% nominal rate, with inflation running at 2.5%, it means that you are just paying 3.5% real. Historically a pretty average number, not too high and not too low.

Small changes one way or the other should not have dramatic effects (apart from those careless people who borrowed to the brim and have no buffer savings).

I personally think that lending rates are important in a highly leveraged market like real estate.

However in the Vancouver case I think the bubbliness is due in many cases to what Shiller calls irrational exhuberance: here more than in many other places it seems that herd behavior is dominant and people act on impulse.

Shiller said not long ago that vancouver was, in his opinion, the most overpriced market in North-America. An overstatement? Who knows…..personally I don’t think he has anything to gain from making this statement, so I trust his judgement.

]]> By: robchipman http://rireb.wordpress.com/2007/04/10/mortgage-rates/#comment-124 robchipman Tue, 10 Apr 2007 23:42:25 +0000 http://rireb.wordpress.com/2007/04/10/mortgage-rates/#comment-124 I manage more than 70. I manage more than 70.

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