Mortgage rates

Gatordiddy

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Gold mine?

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These will be the new "armored car" robberies
 

BMF

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This is a little surprising:

Yellen: Higher interest rates may be needed to prevent economy from 'overheating'

Yellen: Higher interest rates may be needed to prevent economy from 'overheating'


Yellen: Higher interest rates may be needed to prevent economy from 'overheating'

Brian Cheung
U.S. Treasury Secretary Janet Yellen said this week that the Federal Reserve may have to raise interest rates in the future to cool off an economy moving too fast.

“It may be that interest rates will have to rise somewhat to make sure that our economy doesn't overheat, even though the additional spending is relatively small relative to the size of the economy,” Yellen said in a taped interview with The Atlantic, which aired Tuesday.

Yellen’s remarks apply some pressure on the central bank, which has insisted that it is not “thinking about thinking about” raising short-term interest rates from near-zero.

Fed Chairman Jerome Powell said last Wednesday that the economy appears a “long way” from its goals of maximum employment and inflation “moderately” overshooting its 2% target.

Yellen, who was Powell’s predecessor at the head of the central bank, elaborated that higher interest rates would help “reallocate” economic resources as the Biden administration prioritizes its many proposed spending measures.

The administration has been moving forward on its multi-trillion dollar infrastructure bill.

“These are investments our economy needs to be competitive and to be productive,” Yellen said.

The Treasury secretary pointed to the need for more domestic research and development. She added that investments in early childhood education and paid leave were critical to boosting labor force participation among women.

Her remarks also mark the first signs of concern from the Treasury over the potential for a runaway economy, in which rampant consumption triggers excessive inflation.

As the economy continues to re-open through the national COVID-19 vaccination campaign, signs have already arrived showing that inflation will tilt higher. But Fed officials are cautioning that they are mostly the result of temporary and “transitory” factors, and unlikely to bring back the episodes of double-digit inflation seen in the late-1970s.

But Powell said last Wednesday that if that does happen, the Fed has the power to raise interest rates.

“This is not what we expect,” Powell said of the idea of 1970s-like inflation returning. “But no one should doubt that in the event, we would be prepared to use our tools.”
 

FireFoley

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This is exactly why Yellen should NOT have been made Treasury Secretary. As Fed Chair, she was the head of an independent, non political (supposedly) group whose job was stable prices and full employment (control overnight rates). How many times did she and other Fed Heads go in front of Congress twice a year and say you have to stop the stupid spending. So now she is in a 100% political position serving at the behest of the Prez (or whoever) and now she is saying she has never met any spending that she did not like. As Treasury Sec. do NOT comment on any FED matters. I do not give a shyt your experience. Shut your pie hole or if not, then resign!
 

FireFoley

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Federal judge overturns national eviction ban


More to come. Might be time to begin getting your ducks in a row.
 

BMF

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I need to get a pre-approval for a mortgage in Florida (it looks like I may get the green light to full-time telework, so we're going to get the hell out of DC). I know a few people in the business in Jacksonville (and here in the DC area) - or I was considering just calling USAA to get a pre-approval letter. Thoughts??
 

soflagator

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I need to get a pre-approval for a mortgage in Florida (it looks like I may get the green light to full-time telework, so we're going to get the hell out of DC). I know a few people in the business in Jacksonville (and here in the DC area) - or I was considering just calling USAA to get a pre-approval letter. Thoughts??

Good for you. Having just gone through a refi, I can tell you the disparity between great mortgage brokers and the average is massive right now. Larger than I've ever seen. I tried giving the business to someone I knew(against my better judgement), and it was delay after delay on a very easy transaction in terms of credit and equity. I decided to go with a group out of California, and from initial call to closing was exactly 26 days. FWIW, I've seen others going with local credit unions and one that(I think) was USAA and they've both been in the process for months. Not sure what the issue is, but it's been a nightmare. The industry is bombarded right now, so you need a pitbull.
 

BMF

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Good for you. Having just gone through a refi, I can tell you the disparity between great mortgage brokers and the average is massive right now. Larger than I've ever seen. I tried giving the business to someone I knew(against my better judgement), and it was delay after delay on a very easy transaction in terms of credit and equity. I decided to go with a group out of California, and from initial call to closing was exactly 26 days. FWIW, I've seen others going with local credit unions and one that(I think) was USAA and they've both been in the process for months. Not sure what the issue is, but it's been a nightmare. The industry is bombarded right now, so you need a pitbull.

Thanks for the info. I've had a few friends re-fi around here and didn't seem to have huge issues. But this would be a purchase (we found a place we're probably going to buy FSBO, so no realtor involved). I'm surprised to hear that USAA had a delay....I just worry I wouldn't get the best rate w/ them (I have an 840 credit score and will be putting 20-25% down).
 

soflagator

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Thanks for the info. I've had a few friends re-fi around here and didn't seem to have huge issues. But this would be a purchase (we found a place we're probably going to buy FSBO, so no realtor involved). I'm surprised to hear that USAA had a delay....I just worry I wouldn't get the best rate w/ them (I have an 840 credit score and will be putting 20-25% down).

Yeah, I should've been a little more specific. One of the credit union issues was a purchase. They were approved, under contract and days from closing when they "discovered" that the husband was 1099 and didn't have the necessary time on job or like field. Inspections had been paid for and everything. To be clear, I haven't followed up so it may be resolved by now, and I'm sure none of these issues are relevant to your situation, I just feel like it's amateur hour right now with a lot of mortgage companies and banks/cu's.

I'm sure with your history with them and general knowledge of the situation, USAA would be fine for you. Most banking arms will almost always make their money off of the 630-670 range. I could definitely see them playing the "we've got you" card with someone in that area. There's nowhere to hide yield in your case.
 

Detroitgator

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Thanks for the info. I've had a few friends re-fi around here and didn't seem to have huge issues. But this would be a purchase (we found a place we're probably going to buy FSBO, so no realtor involved). I'm surprised to hear that USAA had a delay....I just worry I wouldn't get the best rate w/ them (I have an 840 credit score and will be putting 20-25% down).
I've found that my disappointment in USAA has grown in direct proportion to how much TV advertising they've done in the last 10-15 years
 

alcoholica

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100% cash as of today
 

alcoholica

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Serious question: Why?
because when the market crashes, it'll go quicker than we think and harder than we think. I'm not waiting to time it perfectly, just wanting to sleep easy at night and not get caught holding a bag.
 

no1g8r

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because when the market crashes, it'll go quicker than we think and harder than we think. I'm not waiting to time it perfectly, just wanting to sleep easy at night and not get caught holding a bag.

I completely understand. Are you sitting in the sidelines with just your real estate capital, or is your entire portfolio now in cash?
 

alcoholica

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I completely understand. Are you sitting in the sidelines with just your real estate capital, or is your entire portfolio now in cash?
Everything is liquidated
 

no1g8r

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Everything is liquidated

I did the same thing quite a few years ago. We were all convinced that everything was going to crash with the new socialist President going into office, and that the economy, which had been doing well, was going to tank. I pulled everything out just before Clinton was inaugurated, and kept it out for about 3 years. I missed out on a good chunk of one of the biggest run ups ever.

I’ve been thinking about pulling a significant amount of cash out and sitting on the sidelines, as things look a lot like they are heading into the crapper. But the question is always there, “do I pull my dollars out now, and risk either missing out on a bull run, or having hyperinflation reduce the value of my cash pile to a pittance?” “Do I convert my cash pile to something that holds value better, like precious metals or gem stones?” “Or do I stay heavily invested in equities, along with some real estate, but pull enough to the sidelines that I have something more to recover with should everything else drop by 50, 60, 80% or more?”

To me, these are hard questions, and the closer I get to retirement, the more “correct” I need to be.
 

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