What does all this government intervention and bank talk mean to me?
Not quite sure yet. The Government is talking as if banks were not approving loans. This is NOT the case. It is still unclear as to what will be done to protect consumers who have fallen behind on their mortgages. It is still unclear on how banks will now magically be able to approve loans they couldn't approve last week. We will report on this as soon as the facts are released. Until then ----
As the Government attempts to help our ailing economy we have seen an increase in the number of purchase applications. Nobody can pinpoint the "bottom" but it appears as if consumers are starting to leave the sidelines, fearing higher interest rates will negate any deals found on purchases.
The stock market has its legs back which is a good thing. Keep in mind one thing. Typically, when the market is on a roll 10 year treasury bonds usually get worse. Mortgage rates tend to follow the 10 yr bond. What this means to you is rates have gone up since the stock market rally of last week and continues to do so today.
Now rates are not skyrocketing through the roof but one thing is for sure, rates were lower last week. Timing is everything is today's mortgage market. Talk to a mortgage professional and seek high quality advice.
4 Comments on Whats all this bank talk mean to me?
OCT
14
2008
Lewis, keep spreading the love! Caution though, a one day rally on the NYSE does not a recovery make. It will be interesting to see where the bond market and t-bills go today and where the DJIA goes for that matter. My hope is we have seen the bottom.
In the meantime, let's keep telling the people that opportunity is still out there.
Okay dude... 200 pts? lol Yes, spread the word.... but think of something else. ;o) But seriously, rates are hard to pin point. Timing is everything... and so is using a mortgage professional and not an app. taker.
10 year Treasury Notes are a part of the picture, but are not the main force behind interest rates. The T Note role in setting rates is more due to the relation that they have in comparison to FNMA 30 year bonds (currently the 6.0% bond is most accurate), and the difference between yields between the two (return on investment of one versus the other).
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Maryland Mortgage Expert
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Lewis, keep spreading the love! Caution though, a one day rally on the NYSE does not a recovery make. It will be interesting to see where the bond market and t-bills go today and where the DJIA goes for that matter. My hope is we have seen the bottom.
In the meantime, let's keep telling the people that opportunity is still out there.
Good call!
Bo