June 11th, 2011 11:00 PM by Eric Fang
First, let's talk about the interest Rate. It might go up after Summer.
History might repeat itself. If we compare this year's interest rate trend, it's very similar to last year'sexcept the ARM went lower low this year. And as I explained a few weeks back, ARM rates hit the bottom.
What's the trend of the fixed rates? 30 yr fixed mightgo to 4.25%(already at the neighborhood of 4.375%);15 yr fixed 3.5% to 3.625%. All rates based on 400k loan.
But the rate might go up after that. Very similar to last year's trend. Just take the opportunity to get the low rate as you can and then wait for the best.
For the mortgage industry, the wholesale market share is only6.9% last quarter. But the brokers at California are ok.
There are so many challenges for the past a few years.First, the banks failed. Amtrust & Taylor Bean closedthe doors in 2008 caused us to re-submiit some of theloans; some big banks exit the wholesale channels, likeHSBC, Bank of America and Chase; then lots of regulationchanges, HVCC for appraisals, new Reg Z of GFE, and now the most recent loan originator compensationchanges. Though changes make the loan originationharder, but the best loan originators will always survive.
I go to the bookstore every weekend. This is oneof my hobbies other than playing the bridge(one hourper day). In Seth Gordon's Linchpin, he talked about how to be a "indispenable" person in this change society. Seems like, not only mortgage industry endurethe changes, it happens with all industries.
And let's try to be the linchpins in any organizations.