We are from the Fed and here to help you ?

[Elliott]

(WSJ 12/20/24) "The Fed Cut Rates. Mortgage Costs Went Up.
Surging Treasury yields have pushed borrowing costs higher

Average 30-year mortgages have climbed to around 6.7% from roughly 6.1% since the Fed started lowering rates in September, according to Freddie Mac. And they are only poised to rise further. That is because mortgage rates move with the yield on the 10-year Treasury, which has surged this week.

........

 

[Terrel L. Shields]

The traditional 2% above Fed rate seems a mite out of whack -- 4.25 + 2 = 6.25 but we are well above 7% rates. So, the mortgage companies are pricing in extra risk? Why? Do they suspect something we don't?

 

[Mark K]

So, the mortgage companies are pricing in extra risk? Why? Do they suspect something we don't?

Maybe they know that appraisal waivers and allowing borrowers to make 100%+ LTV mortgages will, with all certainty, come back and bit somebody in the azz. I'm sure the bitten will be the taxpayers, again.

Abolish F/F and make the banksters keep their crappy loans, maybe they'll think twice about loaning to unqualified borrowers.