Crib Chatter on Vacation This Week
It’s time to take some time off.
With COVID outbreaks happening all across the country, I’m doing a staycation this week.
This is the reality of 2020.
These palm trees in the Gold Coast were the closest I got to seeing the real deal this year.
Kudos to the gardener at this building who goes above and beyond every summer.
I’ll post on the September home sales on Oct 26.
Mortgage rates continue to fall, with the 30-year average fixed mortgage rate as low as 2.81%.
If they fall further, could this be one of the hottest spring markets in over a decade?
Regards,
Sabrina
“If they fall further, could this be one of the hottest spring markets in over a decade?”
For refis? Yes. For new home purchases? No.
Mortgage rates are closely tied to the ten year treasury, which reflects investors’ view of the economic outlook which if accurate indicates an abysmal view, which would adversely affect valuations. In March-May of this year Fed bought another $3T, but hasn’t bought anymore since (other than to replace maturing notes which are miniscule). So low rates now are indeed investors expectations of abysmal.
Did Japanese real estate valuations rise in the 1990s with falling rates?
If you buy in a high-rate, low valuation environment you can always refi later at a lower rate. The opposite isn’t true. But with ever increasing levels of debt government’s become precluded from ever raising rates substantively again as shown with Japan.
Aimloan indeed showing 30yrs with points buydown at 2.375% with 15yrs with points buydown at 1.875%. This is 3/8’s of a % lower than the lows seen at the end of 2012 when the Fed was buying every MBS in sight. And it’s an organic outlook as again Fed isn’t currently buying/moving the market. Mortgage market can’t go much lower as there needs to be some sort of spread over the 10yr for the institutions in it to make money. They won’t originate them at a loss.
In the months/years ahead it will be a good time to be a mortgage broker/lender and a physical therapist (for covid long haulers) and a bad time to be most everything else.
https://tradingeconomics.com/japan/interest-rate#:~:text=Interest%20Rate%20in%20Japan%20averaged,percent%20in%20January%20of%202016.
“With COVID outbreaks happening all across the country, I’m doing a staycation this week.”
dumb!
go somewhere! Theres a 99.999% chance you’ll survive lol
I can’t possibly imagine staying anywhere in Chicago is going to be any fun right now with everything shut down and shit weather on the way, and the big post election reeeee session from the adult babies