New York City Real Estate | NYC, NYNew York City Real Estate | NYC, NYNew York City Real Estate | NYC, NYNew York City Real Estate | NYC, NY
  • ABOUT
    • ABOUT SCOTT
    • ABOUT THE TEAM
    • PRESS
  • BUYERS
  • SELLERS
  • VIDEOS
  • LISTINGS
  • JOIN OUR TEAM
  • BLOG
  • CONTACT
  • CALL SCOTT NOW

Mortgage Rate Volatility- Europe, LIBOR, etc

    Home Uncategorized Mortgage Rate Volatility- Europe, LIBOR, etc
    NextPrevious

    Mortgage Rate Volatility- Europe, LIBOR, etc

    By admin | Uncategorized | Comments are Closed | June 14, 2011 | 0

    Well, well, well.

    I guess it’s not about when rates are going to go up.

    It’s about how long they can continue to stay down.

    Why are they still

    low?

    Political calculation?

    Bad US Policy?

    Bad Stock Market?

    Unemployment numbers?

    Rates are not only down, but they have actually dropped (though they popped up slightly yesterday).

    The

    10 YR

    yield is what most most

    mortgage rates are based on –

    In the past 2 weeks, as rates

    have found recent lows,

    I’m still not seeing a huge pickup of 1-bedroom deals- that said, saving $50-100 per month on a mortgage strengthens the argument of buying over renting.

    Beautiful For Now

    HSBC broker Frank Cronin has some great insight.

    “I do not think conforming rates are going up substantially or quickly

    just because the only way rates can go is up. I think low rates on conforming products will be around for awhile, maybe years.”

    He focuses on the rates being low for those loans the GSE Fannie Mae will buy.

    On the other hand, we have Jumbo loans (above $729k).

    Mr. Cronin’s issue is how Europe affects US rates.

    “Assuming that

    Greece’s debt issues is going to effect the European Economy as a whole (Greece has the lowest rating of any sovereign country),” we could have a real problem on our hands.
    “If Greece and it’s debt continues to be down graded getting closer to default that will effect the LIBOR (L is for London).”
    Frank writes, “If the LIBOR goes up these rates could be in the 4’s and that would hurt the only market that is truly trading, the Jumbo and Super Jumbo Market.

    Hopefully people truly realize know is the time to buy.”
    That’s a well-buried lead, underneath lots of negativity.

    More positive outlook from Olga Savelov, tough-nosed mortgage broker to the stars…

    She felt that his comments helped rates improve in the market.

    She writes, “Bernanke essentially made some downbeat and economically depressing comments, all in all it’s about inflation and how fast it comes.”
    Ms. Savelov refuses to pull out her crystal ball, but claims that home loan rates will stay volatile, then BOOM -will likely worsen quickly.
    Both experts see foreign invesment pushing apartment prices

    up.

    So much interrelated.

    We’ll see if Europe affects rates here in the US.

    No tags.

    NextPrevious

    Recent Blog Posts

    • VIDEO: What’s Harder To Get? A Vaccine Appointment, or A Showing Appointment? March 28, 2021
    • What Happens When The Rent (and Sale) Prices are Too Damn Low? Unintended Consequences March 28, 2021
    • Real Estate Tech Makes Buying Easier. Do Buyers Actually Want That? March 28, 2021
    • VIDEO: Spring Will Be The Big Test as the Market Picks Up… February 26, 2021
    • Let’s Set The Record Straight (The News Got It Mostly Wrong) February 24, 2021
    • “Get Those Brokers Back in Here! Turn The Machines Back On! Turn the Machines Back on!” February 24, 2021
    • It Was Snowing This Week, But Inventory Is At Summer Lows February 24, 2021
    • VIDEO: The Reset Button. 2021 Picks Up Where Pre-COVID 2020 Left Off (Less 10%) January 28, 2021
    • Construction Loans in Coops? Bridge Loan Products? In New York? Fuggedaboutit? January 27, 2021
    • 4th Quarter RE Market Report- Back to Our Regularly Scheduled Program… January 27, 2021

    Archives

    Call us: (646) 400-0769
    Email us: sharris@bhsusa.com
    Visit us: Brown Harris Stevens
    1926 Broadway
    New York NY 10023

    © 2021 The Harris Residential Team. All rights reserved.
    • About Scott Harris
    • About the Team
    • Press
    • Buyers
    • Sellers
    • Videos
    • Listings
    • Blog
    • Contact
    • Call Scott Now
    • Brown Harris Stevens Fair Housing Policy
    • ABOUT
      • ABOUT SCOTT
      • ABOUT THE TEAM
      • PRESS
    • BUYERS
    • SELLERS
    • VIDEOS
    • LISTINGS
    • JOIN OUR TEAM
    • BLOG
    • CONTACT
    • CALL SCOTT NOW
    New York City Real Estate | NYC, NY