Sarasota is the 6th most overvalued housing market in FL (how much, home)

[wondermint2]

Mortgage rates plunge just as home prices set another record

https://news.google.com/articles/CAI...S&ceid=US%3Aen

KEY POINTS

- The average rate on the popular 30-year fixed mortgage had risen close to a full percentage point from the start of this year up until last Friday, when it hit 4.18%, according to Mortgage News Daily.

- It hit 3.9% on Tuesday.

- This will give homebuyers more purchasing power as the historically busy spring season kicks off. It will also keep record high home prices continuing on their run higher.

Mortgage rates are sinking as markets contend with the ramifications of Russia's attack on Ukraine, and that means home prices are likely to continue surging.

[MOforthewin]

Originally Posted by wondermint2

Mortgage rates plunge just as home prices set another record

https://news.google.com/articles/CAI...S&ceid=US%3Aen

KEY POINTS

- The average rate on the popular 30-year fixed mortgage had risen close to a full percentage point from the start of this year up until last Friday, when it hit 4.18%, according to Mortgage News Daily.

- It hit 3.9% on Tuesday.

- This will give homebuyers more purchasing power as the historically busy spring season kicks off. It will also keep record high home prices continuing on their run higher.

Mortgage rates are sinking as markets contend with the ramifications of Russia's attack on Ukraine, and that means home prices are likely to continue surging.

Loan rates need to rise. What are the banks worried about?


Are banks worried that the war will spill into a World War eventually and worried about a tanking economy if it becomes a World War and spreads into Europe?


The thing is if it spreads and NATO countries get into it that means the US is in the war. That makes it a decent chance of nuclear warfare.

[Trying941]

Originally Posted by MOforthewin

Loan rates need to rise. What are the banks worried about?


Are banks worried that the war will spill into a World War eventually and worried about a tanking economy if it becomes a World War and spreads into Europe?


The thing is if it spreads and NATO countries get into it that means the US is in the war. That makes it a decent chance of nuclear warfare.

Loans rates do not rise because banks set them. They rise and fall because of external factors that influence the mortgage markets. Bank rates reflect the market.

What is affectingthe market? One factor is a flight to dollars, as seen in an increase in dollar purchases. See the DEXUSEU. Another is the risk of holding securities has increased with market instability.

[AaronDavidSchultz]

Oh my.


The Federal Reserve sets monetary policy - using many tools it has. It's sets the fed funds rate. This rate can increase or decrease other rates on the short term and long term (repo, CP, bill, BA's etc etc for example). That has a direct effect on United States Treasury Bonds.


Mortgage rates are generally based off the 10-year UST Bond at a spread. You want to know what mortgage rates will do? look to the 10-year UST performance (i.e. movement/chart).


The "market" is always the "Bond Market". The "Bond Market" IS the US Treasury Market. Everything is spread off this market, corporate bond and mortgage bond.


The benchmark is the US Treasury Market. The mortgage market doesn't "affect" the UST market, the UST market affects the mortgage bond market and underlying mortgage rates.


The Fed sets monetary policy - Banks don't.

[Trying941]

Originally Posted by AaronDavidSchultz

Oh my.


The Federal Reserve sets monetary policy - using many tools it has. It's sets the fed funds rate. This rate can increase or decrease other rates on the short term and long term (repo, CP, bill, BA's etc etc for example). That has a direct effect on United States Treasury Bonds.


Mortgage rates are generally based off the 10-year UST Bond at a spread. You want to know what mortgage rates will do? look to the 10-year UST performance (i.e. movement/chart).


The "market" is always the "Bond Market". The "Bond Market" IS the US Treasury Market. Everything is spread off this market, corporate bond and mortgage bond.


The benchmark is the US Treasury Market. The mortgage market doesn't "affect" the UST market, the UST market affects the mortgage bond market and underlying mortgage rates.


The Fed sets monetary policy - Banks don't.

You were a lumber trader, not a bond trader nor a banker. It shows. Mortgage rates are set by bankers reflecting the mortgage resale market for most conforming loans - which is the bulk of underwriting. Close to half of all mortgages are sold in the secondary market.

The secondary market is influenced by many factors. If the Fed makes a move, it usually effects that market - but not much if that move was anticipated and discounted. No move even occurred in the period the question related to so your answer was inapposite. For the period asked about, moves in the mortgage markets reflected other factors.

I find your know it all answers amusing, especially in areas outside of your knowledge where they tend to be out of Wikipedia or Google. Mortgage rates tend to move along with the 10 year bond rates, but not as you state cause one moves the other. The why is because the term of the typical mortgage - even 30 year mortgages - tends to be seven or eight years. Similar effective maturities move together usually. Mortgage markets move pari passu, but mortgage rates are not, as you state, spread off of that market or benchmarked on it.

Your a smart enough guy, but be careful who you correct in banking. Unlike you, they may have played a hand in running a bank.

[AaronDavidSchultz]

I certainly don't have to defend my bonafides to you, a faceless stranger. LOL, or defend my damn opinion LOL



I know the fixed-income markets. I know that a 30 year mortgage tracks what the 10 UST does. That's inarguable.


The drivers of the mortgage market are essentially FNMA, FHLMC in securitizations of generic product and a few crazy structures like CMO's jump Z's etc etc - ARMs are another story but they two are priced off sya the 3 yr or the 5yr or 7yr bonds as a spread off the curve.


Think what you wish pal, believe what you wish - you certainly don't know me and really its' irrelevant if my opinions pass your "muster"....R u nutts?


Carry on, be happy, stay juiced up lol, it's the internet!


Then you admonish "be careful" ??? lol, that's rich pal, this isn't a contest much to your obvious chagrin....


It's quite entertaining sometimes to witness thin-skinned recoil. Good Stuff!

[AaronDavidSchultz]

Also, just for grins, the "term" of a 30 year mortgage is THIRTY YEARS, not "tends" to be 7 or 8 years.....


Any knowledgeable bond trader knows the difference between "term" and what is "Average Life", "half life" etc etc etc - where "assumptions" are made about "speed", and other assumptions made about "pre-payments"


LOL


BTW, a 15 year mortgage's stated term, (just like the 30yr mortgage stated term) is 15 YEARS



LOL oh my my LOL


I won't get into ARM's CMOs, Libors etc etc ....I gotta go to PUBLIX !

[OptimusPrime69]

Originally Posted by MOforthewin

Once you live in FL for awhile the beach doesn't mean much to me. Maybe if I lived in Miami beach it would be better just to go and hit on chicks at the bars by the beach and such.


Whenever I go to the local beaches here i see mostly older folks. I don't see these tons of young, hot chicks. I went to Venice Beach last week when it was warm. Crowded but mostly tourists and retired folks. Only saw two hot chicks.

lol you are your "hot chicks" comments are so cringeworthy.

[Jensen440]

trying to stay sober ?

[Trying941]

Originally Posted by beach43ofus

Just 7 days later, the price jumped from $754k to $769k! That is $2,000/day

February 25th, 2022 : $769k

Well, Russia did invade Ukraine, and Neal raised the Kiawah price in Grand Palm another $15k.

Neal raised the Kiawah at Grand Park and Windward today too. 30k and 25k respectively in two weeks. That continues the $2,000 a day increases.

Grand Park is now 789990, up from 694990 to start the year.
Windward is now 832990, up from 717900 to start the year.