Orlando Mortgage Blog

Rates Stuck On Yesterday

March 18th, 2011 11:22 AM by BILL WILBANKS

    

No real change across the board with the 10 yr less than one bp above yesterday's closing at 3.2641. Dow is up 142 pts at the moment and apparently lenders have factored that in so far this AM. The break below what had been the 3.30% floor (and it had been at that level before opening this morning only to fall back again) for a while just hasn't brought on lender willingness to get off the dime and lower pricing in any meaningful way. The luck of the Irish didn't help yesterday either apparently. That's three days when we could've seen downward rate movement and didn't.

So what's it going to take to see lenders open it up a little at this point? My best guess at the moment comes down to when their pipelines get so low they have to kick it to get it coming in the door again and/or market competition at some point, when the other guy is getting it and they have to price to compete or start shutting more processing centers, as many in the industry have already done in the last six months to align expenses with loan volume reality. So far lenders aren't fighting for it. The hand full of big banks and their big pockets have simply been sitting on too much cash to worry much in the short run. I'm starting to see lender reps comment on how slow it is right now. That's a good sign really. Now, will someone send the memo to the head office...right? :)  

Posted in:General
Posted by BILL WILBANKS on March 18th, 2011 11:22 AM

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