Monday, February 27, 2006

BACK ON TRACK!!!!



This morning I read the greatest piece of news a housing bull could read. it said "mortgage rates have been steadily rising forthe past few months.

WE KNOW THIS IS FALSE!!!!

So what is so good about the news? We are back on track with clowns chasing their theories.

Toll brothers is not the only home builder with record profits. They all have rising profits.

AND THE TRUTH IS WITHOUT RISING RATES PROFITS WILL CONTINUE TO RISE. HOME BUILDERS ARE NOW READY FOR A 30% POP!!!!

Comments:
Now go back to bankrate and do the same graph for 3/1 ARMs, 3mo and 6mo.
 
I went back. The bench mark would first be the 30 year mortgage.

Games the fed does to manipulate short term borrowing, only impact short term money. The economy and credit worthiness of people controls the long term debt.

No question about it. a 3 year arm and the 30 year mortgage are converging. The 30 year mortgage will win the battle thanks to the surging US dollar. It is obviously your opinion that the 3 year arm will push the 30 year mortgage up. Not a laughable view. We will see who is right.

But in the mean time. Main stream media's instance that morgate rates have been steadily rising is false.

The Associate Press, CBS, ABC, Yahoo News wire, Fox News, and I'm sure I left some out ARE ALL WRONG.
 
The 30 year conventional fixed 80% LTV is no longer the only benchmark. 78% of the mortages in Orange Countylast year were nonconforming for instance. Every one of those mortgages is funded with short term money before it is bundled and resold. ECR took a 30% hit yesterday in just such a squeeze. Two weeks of a decline of less than 20 BP after 80 BP upward in the previous 6 weeks does not a trend make.

Some mortgage rates have been rising steadily. Some like the 30 yr have been rising unsteadily. Back on track is not applicable for this situation.
 
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