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I'm sure every indebted, up to their necks in it, moronic mortgage owner really wants to believe that.

meanwhile, them in charge are probably worried about mass unrest if the cost of anything goes up.

I don't think that those in that position would like low sentiment and less lending because it would imply a real collapse in house prices and the economy - at this stage.

I share your concern that they would just be bailing out the borrowers again. What do you think will happen if the US rate hike has the reverse effect of the 2005 UK rate reduction (a setback to the economy rather than a boost) - relative to interest rates and QE etc?

Edited by billybong
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I don't think that those in that position would like low sentiment and less lending because it would imply a real collapse in house prices and the economy - at this stage.

I share your concern that they would just be bailing out the borrowers again. What do you think will happen if the US rate hike has the reverse effect of the 2005 UK rate reduction (a setback to the economy rather than a boost) - relative to interest rates and QE etc?

Bigger deficits, moar QE. Osborne will forget about balancing the budget in this parliament, if he hasn't already.

Edited by zugzwang
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NIRP highly likely IMHO - bit don't for one minute imagine NIRP will help house prices. Hugely deflationary.

QE4 (US) after a stock mkt crash, not before IMHO. Also, won't help HPs except in banker belt.

Edited by Killer Bunny
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When I read something like this that is from some source other than the notorious wolf criers at zero hedge and money week I'll start to get excited.

Fully know what you mean, but in this instance prepared to look at it differently. An interview with someone from the outside heavily involved in trade markets, and decisions thereof. His oil sell looks good from back then. Got to wonder how much of the $Trillions lent to emerging markets (1%) has found its way back to Western/UK/USA prime real estate last few years.

Can't find the quote about fewer dollars and deflationary forces.. though it was from this thread. Agreed. My reply.

When the volume of credit is large, investors can perceive vast sums of money and value where in fact there are only repayment contracts, which are financial assets dependent upon consensus valuation and the ability of debtors to pay. IOUs can be issued indefinitely, but they have value only as long as their debtors can live up to them and only to the extent that people believe that they will. The dynamics of value expansion and contraction explain why a bear market can bankrupt millions of people.

NIRP highly likely IMHO - bit don't for one minute imagine NIRP will help house prices. Hugely deflationary.

QE4 (US) after a stock mkt crash, not before IMHO. Also, won't help HPs except in banker belt.

Fine. That's '

'. Won't help bankers HPs though. Bankers house prices alone? Only bank balance sheets, if it's necessary at all (extra QE). Not just bankers, but future generations.

4 bankers sharing a rental house in London from some average joe BTLer smugging into the papers... younger bankers have no blame.

The banks have vastly more on deposit than for so many years. They're good to absorb the HPC, and then fresh lending, in volume, to younger generations.

Shock and awe correction on assets of older generations.

Edited by Venger
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NIRP highly likely IMHO - bit don't for one minute imagine NIRP will help house prices. Hugely deflationary.

QE4 (US) after a stock mkt crash, not before IMHO. Also, won't help HPs except in banker belt.

So why would they do that then?

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Back down again in March anyone?

It's cold out there mommy.

They would lose so much credibility doing that, imo, or at least for those of us who believe they should take the longer view.

And hpcers fret on about market weakness, when US prime real estate at zany high inflated prices and a generational injustice.

Oh.. let me check.... US mortgages.

No nothing yet - no update from today. I remember the brokers squealing at 4.65% average on the 30 year in 2013 as markets had uncertainty to Fed. Currently averaging around 4.1%.

A Real Conversation About The Fed and Mortgage Rates

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by Matthew Graham on December 15 2015, 4:57 PM

Mortgage rates jumped again today, moving to the highest levels more than a month ahead of tomorrow's hotly anticipated Fed Announcement. Many lenders are now back up to quoting 4.125% on conventional 30yr fixed scenarios, though quite a few remain at...

http://www.mortgagenewsdaily.com/consumer_rates/

http://www.mortgagenewsdaily.com/consumer_rates/313878.aspx

Mortgage rates have had a far worse week than than you've been told anywhere else, and today was even more freakishly destructive than the previous two days. Taken together, this is the worst week for mortgage rates we have on record. Today is one of two times in the past 10yrs where the average borrowing rate for top tier scenarios moved up by at least a quarter of a point. A quarter of a point may not sound like much, but in terms of day-to-day movements in 30yr fixed mortgage rates, it's catastrophic. That leaves best-execution at a stomach-churning 4.625% today.

PLEASE UNDERSTAND, this is real. Freddie Mac may have been out yesterday with the industry's most commonly cited benchmark for weekly rate movements, but this is merely an average that's tallied through Wednesday. Thursday took rates another eighth to quarter higher and today took rates another quarter higher again. If you're a consumer staring at a rate quote in disbelief, or a Loan Originator who doesn't happen to be a member of MBS Live, please know that today's movements are very real and very justified based on the price movements in MBS.

----------

sorry if this is in another thread.

And that entry had quite a few replies.

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Wells Fargo up their mortgage rate to 3.5% but their saving rate doesn't go up.

Savings will go further as sellers reduce prices. If mortgage debt becomes more expensive, leaving fewer buyers pushing and falling over themselves to pay high prices in prime markets. The SoCal hipster buyers need bringing back down to earth, imo, along with the flood of foreign money buyers.

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