polksalet Posted December 16, 2008 Share Posted December 16, 2008 What are refi rates rates on crib after the rate cut today? Quote Link to comment Share on other sites More sharing options...
Rebellab Posted December 16, 2008 Share Posted December 16, 2008 What are refi rates rates on crib after the rate cut today? I got a new mortgage last week at 4.75% for 30 years. From what I know the Fed Rate has little to do with mortgage rates. Watch the 10 year bond. Quote Link to comment Share on other sites More sharing options...
Hugh 0ne Posted December 16, 2008 Share Posted December 16, 2008 The rate they cut today has nothing to do with mortgage rates directly. Quote Link to comment Share on other sites More sharing options...
wiegie Posted December 16, 2008 Share Posted December 16, 2008 The rate they cut today has nothing to do with mortgage rates directly. that's true, but guess what... rates on 10-year treasuries have dropped 22 basis points today and rates on 30-year treasuries have dropped 15 basis points. Mortgage rates should drop accordingly. Quote Link to comment Share on other sites More sharing options...
sundaynfl Posted December 17, 2008 Share Posted December 17, 2008 that's true, but guess what... rates on 10-year treasuries have dropped 22 basis points today and rates on 30-year treasuries have dropped 15 basis points. Mortgage rates should drop accordingly. 10 year treasury note has nothing to do with what mortgage backed securites are doing! If you are watching the 10 year or 30 year treasury yeilds then you are watching the wrong thing... i. e. FNMA 30 year 4.5 is -47 BPS The US 10 year note is up +68 BPS Just my 2 cents... Quote Link to comment Share on other sites More sharing options...
wiegie Posted December 17, 2008 Share Posted December 17, 2008 (edited) 10 year treasury note has nothing to do with what mortgage backed securites are doing! If you are watching the 10 year or 30 year treasury yeilds then you are watching the wrong thing... i. e. FNMA 30 year 4.5 is -47 BPS The US 10 year note is up +68 BPS Just my 2 cents... uh, 10-year treasuries are DOWN 68 basis points right now for the day. See also: http://www.bankrate.com/brm/news/mortgages...ate_drop_a1.asp Thirty-year fixed-rate mortgages are priced off the 10-year U.S. Treasury note. Edited December 17, 2008 by wiegie Quote Link to comment Share on other sites More sharing options...
geeteebee Posted December 17, 2008 Share Posted December 17, 2008 uh, 10-year treasuries are DOWN 68 basis points right now for the day. Where do you see this? My screen shows the 10 year yield of 2.19, down 17 bps. I may be looking at the wrong one. Quote Link to comment Share on other sites More sharing options...
wiegie Posted December 17, 2008 Share Posted December 17, 2008 Where do you see this? My screen shows the 10 year yield of 2.19, down 17 bps. I may be looking at the wrong one. http://www.bloomberg.com/markets/rates/index.html (maybe I'm missing something--let me know if I am) Quote Link to comment Share on other sites More sharing options...
i_am_the_swammi Posted December 17, 2008 Share Posted December 17, 2008 http://www.bloomberg.com/markets/rates/index.html (maybe I'm missing something--let me know if I am) He was looking at the price, not the yield...your numbers are good, wiegie! Quote Link to comment Share on other sites More sharing options...
geeteebee Posted December 17, 2008 Share Posted December 17, 2008 (edited) http://www.bloomberg.com/markets/rates/index.html (maybe I'm missing something--let me know if I am) This is what I was looking at. I don't know the right answer. Edited December 17, 2008 by geeteebee Quote Link to comment Share on other sites More sharing options...
sundaynfl Posted December 17, 2008 Share Posted December 17, 2008 This is what I was looking at. I don't know the right answer. The yeild is down on the 10 year treasury by .17 %, meaning that investors are buying the 10 year.. which in turn drives up the price of the 10 year treasury meaning that the 10 year is currently up 75 BPS in price. The last sale of a 10 year treasury was 113.91. The FNMA 30 year is currently -35 BPS meaning that mortgage rates have went up today and 10 yaer treasuries have went down in rate today. That was why I corrected Wiegie's statement in the first place. Mortgage rates do not mirror what US treasuries do... Quote Link to comment Share on other sites More sharing options...
wiegie Posted December 17, 2008 Share Posted December 17, 2008 The yeild is down on the 10 year treasury by .17 %, meaning that investors are buying the 10 year.. which in turn drives up the price of the 10 year treasury meaning that the 10 year is currently up 75 BPS in price. The last sale of a 10 year treasury was 113.91. The FNMA 30 year is currently -35 BPS meaning that mortgage rates have went up today and 10 yaer treasuries have went down in rate today. That was why I corrected Wiegie's statement in the first place. Mortgage rates do not mirror what US treasuries do... is it common to quote price changes (as opposed to rate changes) in basis points? That is what threw me off in your original post. When I read about changes in basis points, I think about changes in yields, not in changes in price. Having said all of that, my credit union prices their mortgages in a good part off of the 10-year treasury. They don't move 1-1, but if long-term treasuries rates are going down, so, in general, will be long-term mortgage rates. Quote Link to comment Share on other sites More sharing options...
sundaynfl Posted December 17, 2008 Share Posted December 17, 2008 (edited) is it common to quote price changes (as opposed to rate changes) in basis points? That is what threw me off in your original post. When I read about changes in basis points, I think about changes in yields, not in changes in price. Having said all of that, my credit union prices their mortgages in a good part off of the 10-year treasury. They don't move 1-1, but if long-term treasuries rates are going down, so, in general, will be long-term mortgage rates. It is the common way in the secondary markets and bond securities world... we have seen a lot more buying of US treasuries vs. mortgage backed securities due to the perceived risk in mortgage backed securities; that's why the Fed is stepping in to buy MBS, based on pure economics mortgage rates should be about a 1/2 percent lower than what they are today...IMHO. Edited December 17, 2008 by sundaynfl Quote Link to comment Share on other sites More sharing options...
polksalet Posted December 17, 2008 Author Share Posted December 17, 2008 How much does it cost to refi? Is it a flat rate or a percent? Quote Link to comment Share on other sites More sharing options...
wiegie Posted December 17, 2008 Share Posted December 17, 2008 It is the common way in the secondary markets and bond securities world... we have seen a lot more buying of US treasuries vs. mortgage backed securities due to the perceived risk in mortgage backed securities; that's why the Fed is stepping in to buy MBS, based on pure economics mortgage rates should be about a /12 percent lower than what they are today...IMHO. gotcha Quote Link to comment Share on other sites More sharing options...
Hat Trick Posted December 17, 2008 Share Posted December 17, 2008 So is now the time to refi or wait longer? Quote Link to comment Share on other sites More sharing options...
sundaynfl Posted December 18, 2008 Share Posted December 18, 2008 I would wait, but I like to gamble! If you think a rate below 5% is good jump on it! Quote Link to comment Share on other sites More sharing options...
JoJoTheWebToedBoy Posted December 18, 2008 Share Posted December 18, 2008 Waiting for 4.25 - 4.50.... Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.