That's the DOW performance this morning there on the left. News of the globally coordinated cut in interest rates initially propelled the market higher, only to see them fall again. That's usually good for lenders, agents and buyers of real estate.
Lower market, lower mortgage rates. Right? Not this time. The banks are raising rates.
The 10 year bond yield, which more or less predicts moves in 30 year fixed interest rates (not always) rose this morning as traders began to sell bonds in anticipation that this multi-government "fix" might not work.
Here's the reason. This isn't a crisis of fundamentals in the banking industry worldwide. It's a crisis of confidence in the ability of the best and the brightest to make the right decision. Cheap money won't buy confidence. Only leadership will do that.
My recommendation today as a mortgage professional? If you like it, LOCK it!
I'm Mike in Tucson, your preferred Tucson, Arizona mortgage lender.
Think of me as your Tucson expert.
Have you ever heard one of the guys that make the financial decisions for the country or any country admit that they were wrong??????
One can only have confidence in persons and market that persons control or try to control when they are honest.
Where does that leave confidence?????
Lenn,
Honesty and transparency have always been in short supply. The bright side is that when people find someone like you, they're attracted to the professionalism, honesty and transparency you exhibit here in the Rain. Thanks for commenting.
Mike in Tucson
"Crisis of confidence" that just about sums up the national opinion of leadership - both elected and corporate.
Mike,
I've read few posts which say so much in so few words!!! Leadership IS the only way to restore confidence!!! Thanks, Fran
P.S. Dependable and proven leadership!!!
Fran,
Thanks for the kind words.
Mike in Tucson
The change in mortgage rates will be small but you're right if you like what you see LOCK IT UP. don't wait.
MIKE, the problem is the public hears lower interest rate and they automatically think that it means mortgage interest rates. I don't totally understand what they are all connected to but I do know that lower interest doesn't necessarily mean mortgage interest rates.
Mike
Good advise! The bond yield rate is a key for sure. I am a lot like Marchel...I depend on you guys to explain it.
It is exactly a crisis of confidence. No one trusts anyone. Banks won't lend to each other because they're all top heavy in toxic debt... consumer lending is down because banks don't trust consumers to honor their obligations. Of course a little house cleaning to get rid of the crooks might restore some of that conspicuously absent confidence.
Mike - I've noticed that all of this seems to be coming at a time when the leader of the presidential race talks about raising taxes on corporations and capital gains. The speaker of the house want us to stop using oil now, and heaven forbid that you want to find more.
If I had anything to sell, It would get sold now before that guy gets into office.
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These are some scary times - had 2 fall out today because they started the negotations on the home last week... and now, because the bank will not negotiate quickly, they are looking at SIGNIFICANTLY higher rates.