September 20th, 2012 11:37 AM by Eric Fang
I have one borrower asked me whether he can get 3%for high-balance loan. I told him that this is impossible.
Then he asked the possibility of 3.125% or 3.25%?I would say 3.125% is almost impossible. 3.25% has 50% of the chance.
But my question is that why we need to predict the rate?Even on wall street, I know some "expert" will predictthe market, and most of the times the prediction waswrong.
For the interest rate, the best strategy is to followthe trend. And whether we can or can not get the ratedepends on bad is the us/europe/china economy and howmuch MBS Fed will buy. A lot of factors.
But MBS as a commodity(or bonds), it has the bottonline.But any 30 yr fixed rate is below 3% (the market) is insane to me. There are nothing else the investor can purchaseother than MBS? I don't think so.