Rates Crashing Get Ready A Refinance Boomlet Coming And Spring Pop

[glenn walker]

Great news for field appraisers it looks like a rate crash is happening and it could be a spring pop for buyers and refinances so get those vehicle's washed and get ready for the orders.

 

[sputnam]

Great news for field appraisers it looks like a rate crash is happening and it could be a spring pop for buyers and refinances so get those vehicle's washed and get ready for the orders.

Wait. What? I have to wash the Jeep?

 

[Tom4value]

Great news for field appraisers it looks like a rate crash is happening and it could be a spring pop for buyers and refinances so get those vehicle's washed and get ready for the orders.

A “rate crash”? I don’t consider mid six for a 30 year fixed to be a “crash” so I not looking for a refi boom. However, it may be enough for existing homebuyers who wanted to buy up but couldn’t afford it to finally get off the fence and do it. This will open up inventory for first time homebuyers.

 

[Zoe]

Remember I said 30 year mortgage rates are tied more to the 10 year T-bill rate YIELD.

Look at this;

Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity, Quoted on an Investment Basis

View a 10-year yield estimated from the average yields of a variety of Treasury securities with different maturities derived from the Treasury yield curve.

fred.stlouisfed.org

There is an inverse relationship between the 10 year T-bill rate Yield and the 30 yr mortgage rate.

 

[Terrel L. Shields]

I think we might see 4-5% range if Fed drops rates. That might give some relief to borrowers in at 7% rates. As for the sales if we see prices continue to drift down somewhat then perhaps a modest bump up from last year. I'm not expecting that necessarily but it could happen.

I mean I've seen some crazy sales. An old barber here got dementia and his daughter moved him to a rest home and sold his house. The buyer paid $58k for a pre-WWII home of 800 SF and remodeled it. Not making it any bigger just paint and new interior, appliances etc. and sold it for $160,000...$200 a SF. New homes here are selling for $210 a SF. They'll not be anywhere but underwater for a long time.