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| 02:41 AM | ||
| Users Online Now: 1,903 (Who's On?) | Visitors Today: 181,368 | |
| Pageviews Today: 319,762 | Threads Today: 128 | Posts Today: 2,262 |
| 02:41 AM | ||
Interest Rate Hike Tomorrow? | |
| Anonymous Coward User ID: 36417394  United States03/19/2013 06:05 PM Report Abusive Post Report Copyright Violation | "Significant rate hike" when the rate is 0% already? Quoting: Anonymous Coward 36417394 Don't think so. I wonder why the euro hasn't tanked against the dollar? The FED still keeping that thing alive still? Till derivatives do us part... The Law of Compound interest has driven debt levels to totally unsustainable levels, the collapse isn't a matter of 'if,' only 'when.' Come on, OP, blaming the banks & the governments for making bad loans caused this mess? Takes 2 to make a contract, and people flipping houses and others who thought real estate prices would never go down are all part of the larger equation. Nevertheless, sooner or later the bull bond market is going to come home to roost, and falling bond prices will raise interest rates on market forces alone, irrespective of Ben's helicopter. They certainly did their part, but they wouldn't have been able to do their part if Wall St wasn't begging to buy any liar loan they could find, and Washington wasn't ordering them to make every liar they could find a loan. You missed the main point, OP, a collapsing bond market will cause interest rates to rise. If you are a mortgage broker you certainly know the inverse relationship between prices & bond yields. As for what you chose to highlight, cry me a river, Wall Street didn't need to beg for loans when there were plenty of mortgage brokers out there making easy money off of liar loans. Again, not what the thread is about, but your point is well taken. Thanks for the contribution. Do you see a collapsing bond market from this? It seems pretty quick and I would look at Spain and Italy before I would get too worried, but I guess once the dominoes start falling, all bets are off. Fair enough, OP. I would not want to imply that you are not an honest person trying to make an honest buck. Maybe it is the timing of the Cyprus fiasco and the FED meeting that is coincidental and not necessarily contingent. As your original post mentioned, Ben has indicated keeping interest rates extraordinarily low for a while, and that is the perceived reality, despite the recent news of increased housing construction. There are any number of posts on this thread concerning derivatives, and thinking those contracts have baked every known reality into them no doubt the value of the euro is a large part of the concoction. "West Coast wholesaler' is interesting, as the three main perceived financial centers in the US are New York, Chicago, and San Francisco. It seems the Cyprus event perhaps forebodes the seemingly inevitable 'Grexit.' The dominoes need not tumble if the pawns are sacrificed to a greater material advantage. In any event, I wish you well in your mortgage brokerage endeavors. |
Renegade (Me too) User ID: 36457573 United States03/19/2013 06:07 PM  Report Abusive Post Report Copyright Violation | I run a mortgage brokerage (The housing bust was the banks' fault for creating those stupid-ass loans and the government's for forcing us all to make them, so back off with your shots at the little guys. That's not what this is about). Quoting: ReVbo™ Anyway, I got a pretty panicked call from one of my investors, a large West Coast wholesale lender, about an hour ago imploring me to lock all of my loans immediately because they anticipate a "significant rate hike" tomorrow, and when I asked if it was tied to the recent Cyprus unpleasantness, my account manager said he thinks so, but nobody told him exactly why. My question is: Bernanke has said, on many occasions, he has no plans to raise rates anytime soon, and as we have seen mentioned, ad nauseum, for at least a couple years, to raise rates right now would be shooting our economy in the head. Did Cyprus change the game? I just can't see the Fed raising rates right now. Could this mess rock the market so much that rates float up on their own? I'm about as panicked as I can be, after 5 years of watching this stuff every day, which is not very panicked given all the false starts, about the possibilities of Cyprus kicking off the derivative bomb we've all been looking for, but I have a hard time seeing our domestic interest rates going up much anytime soon. What do y'all think? Coming from you Rev, i take this seriously. But I can't make the connection of the derivative bomb and higher interests. Explain? Who is John Galt? |
| Anonymous Coward User ID: 21681843 United States03/19/2013 06:08 PM Report Abusive Post Report Copyright Violation | |
| Resister In God we trust User ID: 1461638 United States03/19/2013 06:11 PM  Report Abusive Post Report Copyright Violation | I run a mortgage brokerage (The housing bust was the banks' fault for creating those stupid-ass loans and the government's for forcing us all to make them, so back off with your shots at the little guys. That's not what this is about). Quoting: ReVbo™ Anyway, I got a pretty panicked call from one of my investors, a large West Coast wholesale lender, about an hour ago imploring me to lock all of my loans immediately because they anticipate a "significant rate hike" tomorrow, and when I asked if it was tied to the recent Cyprus unpleasantness, my account manager said he thinks so, but nobody told him exactly why. My question is: Bernanke has said, on many occasions, he has no plans to raise rates anytime soon, and as we have seen mentioned, ad nauseum, for at least a couple years, to raise rates right now would be shooting our economy in the head. Did Cyprus change the game? I just can't see the Fed raising rates right now. Could this mess rock the market so much that rates float up on their own? I'm about as panicked as I can be, after 5 years of watching this stuff every day, which is not very panicked given all the false starts, about the possibilities of Cyprus kicking off the derivative bomb we've all been looking for, but I have a hard time seeing our domestic interest rates going up much anytime soon. What do y'all think? I think I may call my loan company to lock in a rate before closing on a property in the next couple of weeks. Seriously, I just got approved for a loan for land and was just reading the notice this morning that I could "lock in" any time before closing which is currently supposed to happen March 31st. Thanks for the heads up. It may not change between now and a couple of weeks anyway, but it sure as heck isn't going down. Can't hurt to lock in now. "God forbid we should ever be 20 years without such a rebellion. The people cannot be all, & always, well informed... If they remain quiet under such misconceptions it is a lethargy, the forerunner of death to the public liberty... Let them take arms... What signify a few lives lost in a century or two? The tree of liberty must be refreshed from time to time with the blood of patriots & tyrants. " - Thomas Jefferson in 1787 [link to line-in-the-sand.blogspot.com] |
Lady Jane Smith Forum Moderator User ID: 1305009 United States03/19/2013 06:11 PM  Report Abusive Post Report Copyright Violation | Raising interest rates in the USA to 0.75% p/year would be enough to destroy the whole world economy in a matter of weeks... Quoting: Anonymous Coward 36517690  It would take very little to send everything toppling considering the fragility of the global economy. The current demand is highly elastic, and increase in the cost of $ will have a geometric impact & usher in a halt to any "recovery" activities. Life is karma and karma always reflects both past and present circumstance. Our time here is short, so choose carefully and behave well, for all of your tomorrows are presently being decided. "Don't die on a small cross..." Saddletramp's Mom "A fool thinks himself to be wise, but a wise man knows himself to be a fool." -- William Shakespeare, born April 23, 1564. |
| DoomRunner User ID: 25143006 03/19/2013 06:11 PM  Report Abusive Post Report Copyright Violation | |
| Nickadeemus User ID: 30688699 United States03/19/2013 06:12 PM  Report Abusive Post Report Copyright Violation | The only thing I could think of to set off a rise in interest rates would be some kind of domino reaction in derivatives disney land. Maybe related to interest rate derivatives? Quoting: Anonymous Coward 961432 If the banks figure they might lose on interest rate bets they made, I suppose it's possible they would raise rates. But honestly, I can't think of any other reason they would do that. . I take that back. Perhaps, the geniuses at the marriner eccles building have finally reached the conclusion that the liquidation value of perpetual debt threshold has been reached. Thinking it is related to the prevailing interest rates at the present, they intend to raise interest rates to avoid catastrophe. When in point of fact it was the serial halving of interest rates that occurred from it's decade high in late 2007 of around 5.8% down to current record lows of near 0%. All the debt issued in that time frame would have to be doubled for each time the interest rate was halved to arrive at the total liquidation value of perpetual debt over that time period. In other words, its too damn late now. [link to www.safehaven.com] . The most intelligent possibility thus far injected. Well said sir/maam! It's kind of like the FED is a turtle on it's back. Nick®  Just passing on some often ignored wisdom from Fekete. I think he has been shockingly right all along. Best of luck to you and yours. . And as well to you and yours. Nick® Pure Life; Get it on... |
| Anonymous Coward User ID: 36417394 United States03/19/2013 06:13 PM Report Abusive Post Report Copyright Violation | Coming from you Rev, i take this seriously. But I can't make the connection of the derivative bomb and higher interests. Explain? Quoting: Renegade (Me too) If I may... long story short, bond prices fall, yields rise. This is all about keeping the bondholders secure at everyone else's expense, gig up, game over. |
| Nickadeemus User ID: 30688699 United States03/19/2013 06:14 PM Report Abusive Post Report Copyright Violation | ... Quoting: ReVbo™ Thanks, Jane. That's what I've been thinking. I don't know what has these guys so spooked, but I thought it was worth discussing. Either way, this Cyprus thing smells really bad. Agree. This may certainly be viewed as the trigger when we reflect back in several years. If we are able to reflect back, that is. Man...Granted, I'm sleepy, but you just knocked the crap out of my desensedoomed brain. Very surreal to think of reflection not being possible. Good to see you M'Lady. Looking dashing and dapper as usual. Nick®  Hi Nick!! Just got out of the bubble bath. Hugs!  So good to see you ma'am. Think Revbo might be on to something here. Good thing some one gave him a pin. ;-> Nick®  Pure Life; Get it on... |
| Lady Jane Smith Forum Moderator User ID: 1305009 United States03/19/2013 06:16 PM Report Abusive Post Report Copyright Violation | ... Quoting: Lady Jane Smith Agree. This may certainly be viewed as the trigger when we reflect back in several years. If we are able to reflect back, that is. Man...Granted, I'm sleepy, but you just knocked the crap out of my desensedoomed brain. Very surreal to think of reflection not being possible. Good to see you M'Lady. Looking dashing and dapper as usual. Nick® Hi Nick!! Just got out of the bubble bath. Hugs! So good to see you ma'am. Think Revbo might be on to something here. Good thing some one gave him a pin. ;-> Nick® We will have to see, an increase will have a slowing effect on spending, but could prove to encourage people not to empty their accounts. Will not work on me. I will not keep my savings in for a stinking 2% and face a serious threat of losing everything. Life is karma and karma always reflects both past and present circumstance. Our time here is short, so choose carefully and behave well, for all of your tomorrows are presently being decided. "Don't die on a small cross..." Saddletramp's Mom "A fool thinks himself to be wise, but a wise man knows himself to be a fool." -- William Shakespeare, born April 23, 1564. |
| Nickadeemus User ID: 30688699 United States03/19/2013 06:16 PM Report Abusive Post Report Copyright Violation | Raising interest rates in the USA to 0.75% p/year would be enough to destroy the whole world economy in a matter of weeks... Quoting: Anonymous Coward 36517690 It would take very little to send everything toppling considering the fragility of the global economy. The current demand is highly elastic, and increase in the cost of $ will have a geometric impact & usher in a halt to any "recovery" activities. Let's not forget also that this Cypress business is not being conducted within the same "Hush/secret/sweepunder rug" parameters as was Greece. This is WAY more in the open which begs the question. Was it intentional? Nick®  Pure Life; Get it on... |
| Anonymous Coward User ID: 1482838 United States03/19/2013 06:17 PM Report Abusive Post Report Copyright Violation | I still see the pressure to raise rates being from the bottom up, not from the top down. If depositors take their money a bank has no choice but to raise rates to attract the deposits. If all the banks in a town are experiencing loss of account holders, first one, then another will raise the savings paid on long term deposits. They can not afford to monetize all the accounts, they HAVE to try to keep them in place. |
| MaxMad User ID: 36519171 United States03/19/2013 06:17 PM  Report Abusive Post Report Copyright Violation | |
| Anonymous Coward User ID: 16588 United States03/19/2013 06:19 PM Report Abusive Post Report Copyright Violation | |
| Nickadeemus User ID: 30688699 United States03/19/2013 06:19 PM Report Abusive Post Report Copyright Violation | ... Quoting: Nickadeemus Man...Granted, I'm sleepy, but you just knocked the crap out of my desensedoomed brain. Very surreal to think of reflection not being possible. Good to see you M'Lady. Looking dashing and dapper as usual. Nick® Hi Nick!! Just got out of the bubble bath. Hugs! So good to see you ma'am. Think Revbo might be on to something here. Good thing some one gave him a pin. ;-> Nick® We will have to see, an increase will have a slowing effect on spending, but could prove to encourage people not to empty their accounts. Will not work on me. I will not keep my savings in for a stinking 2% and face a serious threat of losing everything.  same here!!! I was just telling Rev earlier that I needed to get my $ in the bank back down to a manageable level. Nick® Pure Life; Get it on... |
| ReVbo™ (OP) TANSTAAFL User ID: 36513487 United States03/19/2013 06:21 PM  Report Abusive Post Report Copyright Violation | I run a mortgage brokerage (The housing bust was the banks' fault for creating those stupid-ass loans and the government's for forcing us all to make them, so back off with your shots at the little guys. That's not what this is about). Quoting: ReVbo™ Anyway, I got a pretty panicked call from one of my investors, a large West Coast wholesale lender, about an hour ago imploring me to lock all of my loans immediately because they anticipate a "significant rate hike" tomorrow, and when I asked if it was tied to the recent Cyprus unpleasantness, my account manager said he thinks so, but nobody told him exactly why. My question is: Bernanke has said, on many occasions, he has no plans to raise rates anytime soon, and as we have seen mentioned, ad nauseum, for at least a couple years, to raise rates right now would be shooting our economy in the head. Did Cyprus change the game? I just can't see the Fed raising rates right now. Could this mess rock the market so much that rates float up on their own? I'm about as panicked as I can be, after 5 years of watching this stuff every day, which is not very panicked given all the false starts, about the possibilities of Cyprus kicking off the derivative bomb we've all been looking for, but I have a hard time seeing our domestic interest rates going up much anytime soon. What do y'all think? Coming from you Rev, i take this seriously. But I can't make the connection of the derivative bomb and higher interests. Explain? I think we have some folks in here who are better qualified to answer that question than I, but if the debt implosion begins, rates will have to go up to bring investors back into the bond market, if there's a bond market left. I just have a hard time seeing how Bernanke is going to move that quickly, when, as they've been saying all over MSM today, it's just little ole Cyprus. To raise rates right now would be a sign of utter panic on the part of the Fed, and would make things even worse. Rev. 21:4 He will wipe every tear from their eyes. There will be no more death or mourning or crying or pain, for the old order of things has passed away. "The condition upon which God hath given liberty to man is eternal vigilance; which condition if he break, servitude is at once the consequence of his crime and the punishment of his guilt." -Philpot Curran |
| Nickadeemus User ID: 30688699 United States03/19/2013 06:21 PM Report Abusive Post Report Copyright Violation | |
| ReVbo™ (OP) TANSTAAFL User ID: 36513487 United States03/19/2013 06:22 PM Report Abusive Post Report Copyright Violation | I run a mortgage brokerage (The housing bust was the banks' fault for creating those stupid-ass loans and the government's for forcing us all to make them, so back off with your shots at the little guys. That's not what this is about). Quoting: ReVbo™ Anyway, I got a pretty panicked call from one of my investors, a large West Coast wholesale lender, about an hour ago imploring me to lock all of my loans immediately because they anticipate a "significant rate hike" tomorrow, and when I asked if it was tied to the recent Cyprus unpleasantness, my account manager said he thinks so, but nobody told him exactly why. My question is: Bernanke has said, on many occasions, he has no plans to raise rates anytime soon, and as we have seen mentioned, ad nauseum, for at least a couple years, to raise rates right now would be shooting our economy in the head. Did Cyprus change the game? I just can't see the Fed raising rates right now. Could this mess rock the market so much that rates float up on their own? I'm about as panicked as I can be, after 5 years of watching this stuff every day, which is not very panicked given all the false starts, about the possibilities of Cyprus kicking off the derivative bomb we've all been looking for, but I have a hard time seeing our domestic interest rates going up much anytime soon. What do y'all think? I think I may call my loan company to lock in a rate before closing on a property in the next couple of weeks. Seriously, I just got approved for a loan for land and was just reading the notice this morning that I could "lock in" any time before closing which is currently supposed to happen March 31st. Thanks for the heads up. It may not change between now and a couple of weeks anyway, but it sure as heck isn't going down. Can't hurt to lock in now. Yeah, if you're gonna close in the next 30 days, it won't hurt at all to lock now. If it's farther out than that, I would do it anyway. It might cost you a quarter of a point, but things are so weird right now, the piece of mind would absolutely be worth it to me. Rev. 21:4 He will wipe every tear from their eyes. There will be no more death or mourning or crying or pain, for the old order of things has passed away. "The condition upon which God hath given liberty to man is eternal vigilance; which condition if he break, servitude is at once the consequence of his crime and the punishment of his guilt." -Philpot Curran |
| Lady Jane Smith Forum Moderator User ID: 30784106  Russian Federation03/19/2013 06:24 PM Report Abusive Post Report Copyright Violation | Good night  Life is karma and karma always reflects both past and present circumstance. Our time here is short, so choose carefully and behave well, for all of your tomorrows are presently being decided. "Don't die on a small cross..." Saddletramp's Mom "A fool thinks himself to be wise, but a wise man knows himself to be a fool." -- William Shakespeare, born April 23, 1564. |
| Anonymous Coward User ID: 3937774  Canada03/19/2013 06:28 PM Report Abusive Post Report Copyright Violation | |
| ReVbo™ (OP) TANSTAAFL User ID: 36513487 United States03/19/2013 06:29 PM Report Abusive Post Report Copyright Violation | The government here just forced Manulife Financial to raise its rates (they said it was too low, and they didnt want the lenders to do a race to the bottom). Quoting: Anonymous Coward 3937774 So much for a free market. Isnt that called Communism when a government tells a independent company what to do? Fascism, and yeah, that's exactly what this industry is. I've got a form and a regulation for everything. Rev. 21:4 He will wipe every tear from their eyes. There will be no more death or mourning or crying or pain, for the old order of things has passed away. "The condition upon which God hath given liberty to man is eternal vigilance; which condition if he break, servitude is at once the consequence of his crime and the punishment of his guilt." -Philpot Curran |
| Anonymous Coward User ID: 6685296 United States03/19/2013 06:30 PM Report Abusive Post Report Copyright Violation | Anyway, I got a pretty panicked call from one of my investors, a large West Coast wholesale lender, about an hour ago imploring me to lock all of my loans immediately because they anticipate a "significant rate hike" tomorrow, Quoting: ReVbo™ Your investor is a FUCKING DOOMTARD!!! AS would you be if you listened to him! . |
| ReVbo™ (OP) TANSTAAFL User ID: 36513487 United States03/19/2013 06:34 PM Report Abusive Post Report Copyright Violation | Anyway, I got a pretty panicked call from one of my investors, a large West Coast wholesale lender, about an hour ago imploring me to lock all of my loans immediately because they anticipate a "significant rate hike" tomorrow, Quoting: ReVbo™ Your investor is a FUCKING DOOMTARD!!! AS would you be if you listened to him! .  Rev. 21:4 He will wipe every tear from their eyes. There will be no more death or mourning or crying or pain, for the old order of things has passed away. "The condition upon which God hath given liberty to man is eternal vigilance; which condition if he break, servitude is at once the consequence of his crime and the punishment of his guilt." -Philpot Curran |
| Useless Cookie Eater User ID: 29696048 United States03/19/2013 06:37 PM  Report Abusive Post Report Copyright Violation | Raising interest rates in the USA to 0.75% p/year would be enough to destroy the whole world economy in a matter of weeks... Quoting: Anonymous Coward 36517690 It would take very little to send everything toppling considering the fragility of the global economy. The current demand is highly elastic, and increase in the cost of $ will have a geometric impact & usher in a halt to any "recovery" activities. ^^^ This. ....and traditionally the Fed does 1/4 point moves. .75 is insanity in a box.   Last Edited by Useless Cookie Eater on 03/19/2013 06:37 PM |
| Anonymous Coward User ID: 961432 United States03/19/2013 06:40 PM Report Abusive Post Report Copyright Violation | Anyway, I got a pretty panicked call from one of my investors, a large West Coast wholesale lender, about an hour ago imploring me to lock all of my loans immediately because they anticipate a "significant rate hike" tomorrow, Quoting: ReVbo™ Your investor is a FUCKING DOOMTARD!!! AS would you be if you listened to him! . Then he'd fit right in on GLP!  |
| guynur User ID: 36045435 United States03/19/2013 06:41 PM Report Abusive Post Report Copyright Violation | When I started out in lending, monthly mortgage payments should not exceed 28% of Gross Monthly Income and total debts not to exceed 33% of GMI. Years later to be able to make mortgages available to buyers with low income the government thru Fannie Mae and Freddie Mac lowered the standards. So if a low income buyer came in to buy a house if they fell within the gov't guidelines you pretty much had to make the loan if the credit report was ok. I know loan officers who f-in hated these loans. They knew they were crap. The lenders could have kept the loans in house and not use the gov't guidelines but not many lenders would stick their necks out for 30 year in house loans. Bottom line the gov't reduced mortgage requirements and ended up with quantity vs quality. Think about it. 28%/33% w/20% down. The banks rolled them together and ended up with shit. |
| Anonymous Coward User ID: 18850150 United States03/19/2013 06:46 PM Report Abusive Post Report Copyright Violation | |
| Useless Cookie Eater User ID: 29696048 United States03/19/2013 06:49 PM Report Abusive Post Report Copyright Violation | . Quoting: Anonymous Coward 18850150 I wouldn't be surprised if the Fed raised rates. The Fed lowered rates to cause the housing bubble... then raised rates to burst it. . 100% wrong.  Last Edited by Useless Cookie Eater on 03/19/2013 06:49 PM |
| Lady Jane Smith Forum Moderator User ID: 1829477 United States03/19/2013 06:49 PM Report Abusive Post Report Copyright Violation | Calling it a night. Chat ya'll up tomorrow.  Life is karma and karma always reflects both past and present circumstance. Our time here is short, so choose carefully and behave well, for all of your tomorrows are presently being decided. "Don't die on a small cross..." Saddletramp's Mom "A fool thinks himself to be wise, but a wise man knows himself to be a fool." -- William Shakespeare, born April 23, 1564. |
| Anonymous Coward User ID: 36340478 United States03/19/2013 06:53 PM Report Abusive Post Report Copyright Violation | |
