January 20th, 2012 12:43 PM by Eric Fang
I was surprised that I did write a blog for about a week. Shame on me.
Too much stiff going on now. First, most of thelenders are implementing the G-Fees. Some lenders will charge 0.1% to 0.5% fees to the loansso the loan rate will be 0.125% higher than regularrates.
Other new, BOFA exit cash-out refis temporarily.The reason is that they were too "busy" for therefinance. I know. Since a lot of top loan originartorsleft the company. But I do like their earnings.Anyway, they make the money now. And besides,motley said that BAC could be one of the biggestwinners this year. Let's check the end of this year.
Then the big news, we will have possible QE III next week.Not sure how this will imppact the mortgage rates. It depends on the package it will propose. Like, howmany mortgage backed security it will purchase, etc.But one thing is sure, it will keep the interest ratesat the history level for some time.
I did predict 3.5% for 30 yr fixed. And revised to 3.625%because of the G-fees. And the rate did go up slightlyfor the last a few days. Let's check the market reactionafter next week's FOMC meeting.
Happy Chinese New Year amd enjoy the good weekend.And yes, finally we have the rain and snow. Not onlyfarmers will be happy.