MBA suggests rates have hit their apex and will now start trending downward!
My go-to Lender in Columbus Ohio mentioned that while the Fed Funds rate will likely go up a bit more , Fed Fund rate and 30yr fix/10yr bond aren't directly in lockstep, so we may start top see downward trends!
This is going to have a huge positive impact on growth markets like Columbus where demand outweighs supply big time!
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Ya I was just talking to my new construction Banker in Charleston SC this morning and he said the bond market is indicating lower rates .
As long as people are considered "low risk", this is a dynamic they'll be able to take advantage of. But lending requirements are going to become a lot more strict. We're moving into what's called a "credit crunch", meaning there is going to be a lot less capital that lenders will have access to, and therefore they'll lend to only the lowest risk borrowers.
But for people who will be able to get approved, lower rates are always nice :)
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I doubt this (although it would be nice). I think the economy has a bit more issues to sort out before the rates drop.....Just my .02
All these lenders listen and worship Barry Habib and he's been preaching in May things will pivot. Literally had 7 lenders tell me their "theory" and I asked them how'd they get there-- all said Barry habib.
I can't say he's wrong, but nobody knows if he's right. I think for him to be right something breaks severely here in April. I still think we'll go up in May, at the very least.
Let's hope! Most of my commercial lenders tie their rates to the 5yr treasury. They told me they need to see the 5yr hold for a sustained period of time to consider lowering rates.
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