How low can we go? 30 yr fixed at 3.75% with no fees...

[socal78]

Be thankful your loan wasn't at some of the big refinance houses (Greenlight, CC, etc). Most of the larger refi-only places didn't lock their 3.25% 30 fixed deals that were supposed to close in July. That's going to cause some real problems....

Uh-oh. What will the repercussions be?

 

[sgip]

Real problems in OC..... Beyond the pissed clients - from my sources there are a' plenty who thought their rates were locked but weren't.  - every loan file is touched at some point by about 20+ people.

10 at least at the lender: Loan officer, Processor, Underwriter, Doc Department, Funder, Appraisal review, Management, Post Closing Review, Investor relations, Shipping. 7 + Service providers: Appraiser, Title Officer, Title staff, Escrow officer, Escrow staff, Messengers, Mobile Notaries, Everyone else: Receptionists, part time copy staff, landlords, etc.

When a Greenlight (now pushing Reverse Mortgages) or a Cash Call (now selling 125% LTV second loans) and their counterparts like AIM and a myriad of brokers wholly focused on refinances hit an air pocket like this, layoffs are inevitable. This happen once before in 2007 when the music stopped and someone didn't have a chair to sit in.

Expect local employment issues to crop up within what is in essence a service industry. Every good tree needs pruning every so often. Now is that time.

 

[usctrojancpa]

Real problems in OC..... Beyond the pissed clients - from my sources there are a' plenty who thought their rates were locked but weren't.  - every loan file is touched at some point by about 20+ people.

10 at least at the lender: Loan officer, Processor, Underwriter, Doc Department, Funder, Appraisal review, Management, Post Closing Review, Investor relations, Shipping. 7 + Service providers: Appraiser, Title Officer, Title staff, Escrow officer, Escrow staff, Messengers, Mobile Notaries, Everyone else: Receptionists, part time copy staff, landlords, etc.

When a Greenlight (now pushing Reverse Mortgages) or a Cash Call (now selling 125% LTV second loans) and their counterparts like AIM and a myriad of brokers wholly focused on refinances hit an air pocket like this, layoffs are inevitable. This happen once before in 2007 when the music stopped and someone didn't have a chair to sit in.

Expect local employment issues to crop up within what is in essence a service industry. Every good tree needs pruning every so often. Now is that time.

If rates continue to move up towards 4.5%-5% I can see where refi volume will dry as fast as water on hot pavement.  I think Wells also staffed up to meet the increased mortgage level.  Always good to have market cycles to clear out the dead wood out of the system.

 

[ducky]

Greenlight was recently sold to Nationstar.  Nationstar is trying to buy every loan or servicing right they can.

Can't imagine layoffs at Greenlight at this point.  Cash call would be a different story.

 

[Irvinecommuter]

More up and down today in the bond yields but right now about even with the close on Friday (2.48)...Looks like the lackluster data is calming the market down a little.

But that job report on Friday is omnious...trying to decide whether I should lock before or after the reports come out.

 

[nosuchreality]

Welcome to the mortgage roller coaster.  Looks like we're back to 4.125% and possibly closing in on 4.0% for a conforming.  That's still a lot higher than it was two months ago, but a heck of a lot better, psychologically, than the 4.5% or more we were eyeballing last week.

Jumbos are back to 4.5% instead of 5.0% too.

 

[Irvinecommuter]

Welcome to the mortgage roller coaster.  Looks like we're back to 4.125% and possibly closing in on 4.0% for a conforming.  That's still a lot higher than it was two months ago, but a heck of a lot better, psychologically, than the 4.5% or more we were eyeballing last week.

Jumbos are back to 4.5% instead of 5.0% too.

That would be awesome!  Looks like there was some margin built in and the lenders have let go off those margins.

 

[Irvinecommuter]

The yield is bouncing around 2.48 today after an overnight low of 2.45.  Looks like we're going to stay here until Friday.

It is interesting to me how the overnight/foreign market seems to be big buyers of T-notes while there is a selloff when Americans are at the helm.

 

[Irvinecommuter]

Well...after a hopefully overnight session that saw yields dropping to 2.42...yields have returned to about 2.47.  Mortgage rates dropped a bit over last week and it looks like 4.375 is going to where we are going to be today.

ADP numbers came out better than expected...caused the yield to go up.  Dry run for Friday's jobs number. 

I am 99% certainly I am going to lock today.  A few days out of 30 days but the broker says that he can get an extension to cover the difference.  I am already thankful for the drop in the past week...not need to get greedy.

 

[quattroporte]

Well...after a hopefully overnight session that saw yields dropping to 2.42...yields have returned to about 2.47.  Mortgage rates dropped a bit over last week and it looks like 4.375 is going to where we are going to be today.

ADP numbers came out better than expected...caused the yield to go up.  Dry run for Friday's jobs number. 

I am 99% certainly I am going to lock today.  A few days out of 30 days but the broker says that he can get an extension to cover the difference.  I am already thankful for the drop in the past week...not need to get greedy.

Even if you lock your rate today, you might be able to get one float down if the rate goes down. You might want to check.

 

[sgip]

One thing I will gar-on-tee: The moment you lock, someone will say they can offer a better deal.

At this point, fix it and forget it. How many gray hairs have been created since you began watching this day by day, hour by hour? Once you lock, be at peace. That's how home buying should be.

 

[LiefinIrvine]

Well...after a hopefully overnight session that saw yields dropping to 2.42...yields have returned to about 2.47.  Mortgage rates dropped a bit over last week and it looks like 4.375 is going to where we are going to be today.

ADP numbers came out better than expected...caused the yield to go up.  Dry run for Friday's jobs number. 

I am also in the same situtaion, hasn't locked the rate yet.
http://money.cnn.com/2013/07/02/news/economy/june-jobs-report-preview/

 

[nosuchreality]

Even if you lock your rate today, you might be able to get one float down if the rate goes down. You might want to check.

LOL, no your rate will NOT float down.  The only way your rate is going down is if you walk, or threaten to walk enough that they really bite and get another loan at a lower rate.

 

[Irvinecommuter]

Well...after a hopefully overnight session that saw yields dropping to 2.42...yields have returned to about 2.47.  Mortgage rates dropped a bit over last week and it looks like 4.375 is going to where we are going to be today.

ADP numbers came out better than expected...caused the yield to go up.  Dry run for Friday's jobs number. 

I am also in the same situtaion, hasn't locked the rate yet.
http://money.cnn.com/2013/07/02/news/economy/june-jobs-report-preview/

I think the jobs report is going to be better than expected.  The ADP beat expectation (188,000 v. 160,000).  It had 135,000 in May and the jobs report showed 175,000...I think the report may hit above 200K.  Bond yield went up to 2.51, a 0.03 increase from the day before but a 0.06% jump in rates. 

 

[Irvinecommuter]

Locked in at 4.625...the last two days costs me .125% and Bernake costs me nearly a full point.  :'(

Could have locked in at 4.2 but no....I thought there would be no way there would be a 0.4% jump. 

Anyways...it's in the bag.  Maybe the economy will tank again I can refinance in 6 months.

 

[quattroporte]

Even if you lock your rate today, you might be able to get one float down if the rate goes down. You might want to check.

LOL, no your rate will NOT float down.  The only way your rate is going down is if you walk, or threaten to walk enough that they really bite and get another loan at a lower rate.

Where did you get your information from? I have talked to both Wells Fargo as well as with Stearns Lending and both of them told me that I can have one float down if the interest rate goes down. I dont know about Wells, but Stearns told me there is no fee associated with this. Also, Stearns mentioned that you can do an 60 day lock with a 30 day extention for free. Besides, not all lenders are the same. It doesnt hurt to ask. It only takes a phone call.

 

[Irvinecommuter]

Even if you lock your rate today, you might be able to get one float down if the rate goes down. You might want to check.

LOL, no your rate will NOT float down.  The only way your rate is going down is if you walk, or threaten to walk enough that they really bite and get another loan at a lower rate.

Where did you get your information from? I have talked to both Wells Fargo as well as with Stearns Lending and both of them told me that I can have one float down if the interest rate goes down. I dont know about Wells, but Stearns told me there is no fee associated with this. Also, Stearns mentioned that you can do an 60 day lock with a 30 day extention for free. Besides, not all lenders are the same. It doesnt hurt to ask. It only takes a phone call.

The float down is definitely not free...depending the type of financing...it's not even available.

 

[quattroporte]

Locked in at 4.625...the last two days costs me .125% and Bernake costs me nearly a full point.  :'(

Could have locked in at 4.2 but no....I thought there would be no way there would be a 0.4% jump. 

Anyways...it's in the bag.  Maybe the economy will tank again I can refinance in 6 months.

Well at least now you can sleep better at night.

 

[quattroporte]

Even if you lock your rate today, you might be able to get one float down if the rate goes down. You might want to check.

LOL, no your rate will NOT float down.  The only way your rate is going down is if you walk, or threaten to walk enough that they really bite and get another loan at a lower rate.

Where did you get your information from? I have talked to both Wells Fargo as well as with Stearns Lending and both of them told me that I can have one float down if the interest rate goes down. I dont know about Wells, but Stearns told me there is no fee associated with this. Also, Stearns mentioned that you can do an 60 day lock with a 30 day extention for free. Besides, not all lenders are the same. It doesnt hurt to ask. It only takes a phone call.

The float down is definitely not free...depending the type of financing...it's not even available.

Who is your lender? Also, I am just saying what was told to me. I assumed what the lender tells me is accurate. But, I could be wrong.

 

[Irvinecommuter]

Even if you lock your rate today, you might be able to get one float down if the rate goes down. You might want to check.

LOL, no your rate will NOT float down.  The only way your rate is going down is if you walk, or threaten to walk enough that they really bite and get another loan at a lower rate.

Where did you get your information from? I have talked to both Wells Fargo as well as with Stearns Lending and both of them told me that I can have one float down if the interest rate goes down. I dont know about Wells, but Stearns told me there is no fee associated with this. Also, Stearns mentioned that you can do an 60 day lock with a 30 day extention for free. Besides, not all lenders are the same. It doesnt hurt to ask. It only takes a phone call.

The float down is definitely not free...depending the type of financing...it's not even available.

Who is your lender?

Rather not say...but I have asked around. Float downs are not available for new purchases for me and it's a tough market right now.