June 8th, 2009 7:07 PM by Eric Fang
Today’s market certainly shows that rates are seeking a new steady-state level. Clearly the bond market believes inflation will hit us, that the demand for money will drive up rates, and possibly the government buying program can’t stem the tide for higher rates.
It’s not like we didn’t know this day would come. It’s just that we were all hoping to get the lowest rate before it goes up and the low rate can last just a little longer. Good news is that the lender's turn around time will be better, their pipeline will be dried up and they will know how to work with the AMC to get the appraisals done as smoothly as possible. And it may be still hard to get the previous lows, but I think most of us will not miss the boat though it will take longer time to get there.