I've never seen the mortgage business this slow

[BlueManDude]

I'm in the title search business and heavily dependent on a healthy mort market for my living. In the eight years I've been in this field there have been some slowdowns - but nothing like this. A large title company I know of just went under and let go all of their employees. I'm self-employed and getting thru it OK but it's pretty hairy out there right now.

[ny_liberal]

1. the real estate market is as hot as can be in NYC

it's just a slow time of year with Christmas and all

[Dirty Hippie]

2. Just curious

What area of the country are you in?

[BlueManDude]

3. Mass

the days of refi mania are long gone.

[rox63]

8. The MA real estate market

has gone downhill in a major way in the last few months. Prices are sky-high. Those who could afford to buy have already bought. With rates going up, there's no incentive to refinance.

[OPERATIONMINDCRIME]

4. Than why don't they drop their damn rates again?

I have to refinance by June. I'm waitin for the I.O. 3/1 ARM to go back down to 4-4.25%. If they're so desperate why in the past few months has it gone from that to almost 6?

[nadinbrzezinski]

7. you do relize the rates are truly set by the Feds

and not the companies, right? And you are also aware they have been creeping up... juct checking

[OPERATIONMINDCRIME]

9. You Do Realize The Mortgage Companies Tack On As Much On Top As They Want

right? And you are also aware they could slash some off.... just checking.

And you are also aware that the fed raising rates has little to do with most mortgages as they are set by the bond market, right? just checking that too.

[papau]

11. 75 point increase in rate while 10 year bond was rather stable - why?

my guess is the building in of a risk premium for higher rate foreclosure.

I ran from 3 more years at 4% on a ARM to a 5.75% 30 yr a few months back - but then I am a bit of a coward toward the propect of higher rates/inflation.

[DuaneBidoux]

19. Well yes and no. It's not quite so simple.

As short rates start to move closer to long rates (in fact this week they briefly went below short rates) lenders start to slow down lending which pushes end consumer rates (i.e., mortgages) up. They do this because lenders depend on borrowing short at low rates and lending long at higher rates. So if you pay attention mortgage rates are up a full percentage point in order to try and preserve some profit for lenders.

[mountainvue]

24. Actually the fed overnight funds rate

doesn't drive the 30 year fixed rate. it's the 10 year treasury note. ARMs are driven by indexes such as the Libor, treasury, COFI, etc.

[1932]

10. Because now they have to worry about risk.

?

[sabra]

5. ChicagoTrib: Mortgage firms feel pinch

http://www.chicagotribune.com/business/chi-0512120095dec12,1,4004259.story

Mortgage firms feel pinch
Some companies may be on borrowed time

By E. Scott Reckard
Tribune Newspapers: Los Angeles Times
Published December 12, 2005


Ameriquest Mortgage Co.'s recent decision to slash 1,500 jobs is the start of a national shakeout in the home-loan business--one that could cost tens of thousands of workers their jobs and squeeze weaker companies out of the business, industry experts say.

As interest rates have risen, refinancings have faded and applications for loans to purchase homes have begun to decline, according to the Mortgage Bankers Association.

Many borrowers already have taken out equity from their homes through refinancings and second mortgages. If home prices level off, as many predict, these homeowners will have less equity to extract and less incentive to refinance.

Mortgage Bankers Association economist Doug Duncan said jobs would be lost as some companies pared their staffs and others were acquired or went out of business. The number of job reductions will depend on how high rates go, he said, with as many as 80,000 positions eliminated should 30-year fixed rates climb to 8.25 percent, up from 6.32 percent currently.

[nadinbrzezinski]

6. Remember macro trends are not good for the housing

market, and the bubble is expected to burst soon. The november sales were way, WAAAYYYY down

Oh and to those who ask why not drop rates again, you know this, but let me educate the clueless, rates are not determined by the companie but... the Fed Rates

[FloridaPat]

12. Florida is still building like crazy. Not sure if they're still selling

like crazy. With the boomers retiring and people unable to pay heating bills, I figure we should be in good shape for awhile.

[JanMichael]

18. My mother in SW Florida has told me that there's a very obvious slowdown.

I've been harping at her for months about the reports of a RE "bubble" and the potential for a bust and this is the first time she's ever affirmed my concerns. November and December have seen a sharp drop in activity much much more that years past.

Also she's a VERY "hot" market and sells high-end waterfront homes.

[stop the bleeding]

20. Florida had over 400,000 new residents last year - they gotta live

somewhere. Florida is projected to overtake NY by 2010 as the 3rd most state in population.

Pasco county has over 100,000 home starts on the books this year and the contractors are behind schedule by twice the normal time.

No Florida is not cooling off yet, you may here of isolated situations and they are usually related to an area in Florida that is already over populated but as far as the Tampa Bay area - this place is jammin...


Give Mommy a Kiss....."

[Fla Dem]

23. In my NE Florida neigborhood, up until about 3 months ago homes

were selling almost as soon as they went on the market. We now have 3 homes that have been up for sale for 2 months.

[Cleita]

13. I park my trailer on my relative's property in a rather

affluent rural area here on the California coast. Most of the neighbors though are sitting on their properties and not moving. Even though the property values have gone way up, none feel that they can afford to sell what they have and still be able to move upwardly to a better property.

As a matter-of-fact it would be the opposite. So they aren't selling, which means no one is buying, so they don't need mortgages. I'm not an expert on this or even mildly interested, but it's just an observation I have made.

[splat]

14. Most of us live in our homes, we aren't speculating

More interesting is how our incomes wouldn't even let most of us into the market today. Wages haven't kept pace at all.

[YvonneCa]

15. I was working ...

...for a title company during 72-84 (Carter/Reagan years). Interest rates went into double digits (15%). One company was bought out..another just folded (right before Christmas). It was tough, but it forced me into a more stable line of work. I went back to college. Good luck to you, BlueManDude...always have a backup plan. :patriot:

[flvegan]

16. It's quite robust in Florida, and I'm an examiner for a biggie.

However, foreclosures are also through the roof, which is helping drive the mortgage business here (refi and, sadly, lots of predatory lending).

[stop the bleeding]

21. Tampa Bay area here and the housing market is unreal -

what about you?

Also vegetarian here....


Give Mommy a Kiss....."

[flvegan]

22. Smack in the middle of Tampa.

We should talk...

[stop the bleeding]

25. I work in Lutz and live on coast in Holiday

Insurance rates are going through the ROOF - along with property values.

Talk about being a home owner in the right place at the right time.

[alfredo]

17. The rate of new mortgages was down

1.7% in November. Just saw that on ABC news.