Interest Rate Hike Tomorrow?

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).

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 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).

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?

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...

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.

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Coming from you Rev, i take this seriously. But I can't make the connection of the derivative bomb and higher interests. Explain?

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®

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.

They cant do it

Anybody? Bueller? I know it's pretty low-level intel, but hey, this is about as exciting as this game gets.

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.

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 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.

Nite guys. Nick's beat.



Big love Rev & Janie!

Nick®

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).

So much for a free market.


Isnt that called Communism when a government tells a independent company what to do?

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,

Your investor is a FUCKING DOOMTARD!!!

AS would you be if you listened to him!




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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.

Your investor is a FUCKING DOOMTARD!!!

AS would you be if you listened to him!

.

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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.


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They cant do it