Wisconsin Mortgage Update
Posted 11-12-2008 at 11:33 AM by DFrenzel
Updated Wednesday November 12th @ 10:15 am ET
Be ready to lock in a moments notice
Relevant data for float/lock decisions
MBS prices are swinging by 10/32 at a time as traders digest the news Fannie is going broke. Expect wild swings in rates and very conservative pricing from the banks.
Be ready to lock in a moments notice
Relevant data for float/lock decisions
MBS prices are swinging by 10/32 at a time as traders digest the news Fannie is going broke. Expect wild swings in rates and very conservative pricing from the banks.
Total Comments 1
Comments
-
When you post that "MBS prices are swinging" I assume you mean Mortgage Backed Securities. The fact that they are swinging 10/32 is only relevant when you know what causes a rate change. It would take a 35 basis point move to generate a rate change from the banks. Therefore, "wild" swings of 10/32 is not really "wild" at all.
Fannie Mae is going broke? Fannie Mae is 80% owned by the Federal Government. Are you saying the Government is going broke? Who will we make our payments to? The Chinese? The reason I say the Chinese is that they own the most US debt/bonds. If this is the case, we have more to worry about than interest rates going up an eighth or quarter percent.
We are trying to educate people, not panic them.Posted 11-12-2008 at 01:24 PM by dlenski
