JPatrick
Thinks s/he gets paid by the post
- Joined
- Jun 3, 2005
- Messages
- 2,610
The banks I've been watching have raised their 30 year fixed by about .25 to .50 this week.
Anyone else noticing this?
Anyone else noticing this?
I like the sound of that, but did you get a look at her crystal ball?However, she expects the rate to fall back down to where it was for some reason, and she told me to hold off. How about that?
........
Well, by that logic, isn't all of supply and demand "greed" if it's "greed" to increase prices due to higher demand?Banks are swamped in refi's and some are pricing rates higher "just because ".It's pure greed,plain and simple.
If by 'product,' you mean the mortgage itself -- there is no reason to increase rates simply because of demand. Most of the mortgages will be sold back to Freddie and Fannie with the originating bank keeping the mortgage for servicing. Same problem as before.Well, by that logic, isn't all of supply and demand "greed" if it's "greed" to increase prices due to higher demand?
Well, by that logic, isn't all of supply and demand "greed" if it's "greed" to increase prices due to higher demand?
If you have a product and you have suddenly increased demand for it, doesn't Econ 101 indicate higher prices "just because"?
If I have 100 widgets for sale at $50 and I had 1000 people offering to buy them, isn't the natural market response to raise the price to the point where I could still find at least 100 buyers?
If that's "greed," then what is it when businesses *cut* their pricing because of reduced demand? Generosity? Beneficence? Or just plain market forces?
The latest move in mortgage rates won't have squat to do with MBSs until the crowd of eager refinancers with high credit ratings (me included) dries up. That may take a few months.The recent performance of mortgage backed secutities do not support a 1/2 point + increase in rates since last week.
I'm not sure I see how this relates to lowering my mortgage payments, putting cash in my pocket a little more quickly than the federal government. Of course it has spurred a sort of growth.Why are we spending billions to buy up treasuries,in an effort to lower rates and spur growth?If the lender is going to raise rates due to strong demand,it defeats the purpose of the program.
I think it's all about supply, because banks & credit unions can't instantly ramp up their workforce to handle the demand. Instead they add fees, raise rates, and even impose waiting lists on their customers-- until they can get around to them. We jumped on the refinancing as soon as we started hearing about delays and appraiser shortages.In a normal business environment I would agree with you,if the supply is limited. Supply is not an issue......There's plenty of mortgage credit available to those who qualify. This isn't about widgets,it's about an economy in a severe recession.
I think it's all about supply, because banks & credit unions can't instantly ramp up their workforce to handle the demand. Instead they add fees, raise rates, and even impose waiting lists on their customers-- until they can get around to them. We jumped on the refinancing as soon as we started hearing about delays and appraiser shortages.
It it--OK folks, business is great and we are making hay, but this is hard work, so lets get out there and find ways to stifle these pesky profits.This is what our Pen Fed broker told us last Feb when we refinanced. They were using it to control volume of applications.
DD
It it--OK folks, business is great and we are making hay, but this is hard work, so lets get out there and find ways to stifle these pesky profits.
Or is it--OK folks, business is great and we are making hay, I'm convinced the lemmings will pay more, so let's raise our prices.
?
Or is it--OK folks, business is great and we are making hay, I'm convinced the lemmings will pay more, so let's raise our prices.
?
The reason the U.S. government is trying to reinflate housing prices is state governments have crafted their budgets with ever rising property taxes.
My, my, so upset.I don't see why you use the derogatory term "lemmings". What you described is basic supply/demand. We *all* do it, and willingly play the game from both sides. Do you have a better alternative? Do we need a "Pricing Czar" to set the price for every transaction that takes place? That's what the market is for.
Do you charge less for your time than you think the "lemmings" would pay you?
-ERD50
I never could understand the talk about lower or higher property taxes due to changes in valuations and/or rates (and the resultant effect on municipalities). I would think the only thing that matters is how much the municipality spends in total. The rest is all arithmetic, i.e., dividing the total spending by the aggregate assessment and arriving at the tax rate.
Well, the thing is, when assessments rise by 10%, many municipalities don't lower the tax rate so that their "take" matches inflation plus population growth. If the tax rate were routinely set this way, you wouldn't see some of the "tax revolts" that can occur when assessments are rising beyond typical wage growth.I never could understand the talk about lower or higher property taxes due to changes in valuations and/or rates (and the resultant effect on municipalities). I would think the only thing that matters is how much the municipality spends in total. The rest is all arithmetic, i.e., dividing the total spending by the aggregate assessment and arriving at the tax rate.
My, my, so upset.
But I'm with you. Charge what you can while you can. What the heck, that didn't hurt us befire did it??
Kinda tenuous at best. Most of it relates to sales tax. What I questioned in your post was the statement that *property* tax flow/ebb with home prices, and that it is a State level problem. I would also think HIGHER house prices would leave LESS money to be spent on furnishings, etc.
I'd be curious to see a list of States that levy a property tax, and of those, which are based on the absolute value of the property rather than the relative value (like my County).
-ERD50
which means “according to value.”
I see nothing wrong with lower housing prices. The intervention to prop up housing prices borders on immoral. The reason the U.S. government is trying to reinflate housing prices is state governments have crafted their budgets with ever rising property taxes.
.
Which means lower value = lower revenue = states budgets have to be cut.
You also didn't bother to quote another line from your source:If the house next door is assessed at 2X mine, he pays 2X the tax. But (outside of other legislated increases), if all the houses in the district increase or decrease in value by 50%, no taxes would change.
-ERD50Illinois does not have a state property tax