Non-QM, Underwriting Products; Why Rates are This Low, Impact on Refi Population


Posted To: Pipeline Press

Sometimes you’re stuck in the middle . (Thanks to Myrtle for that one.) Right now, it seems, rates are done being stuck in the middle and have edged back down leading to refi hopes by lenders. “Hope,” however, is not a business strategy. For the first time since 2007, the 10-year US Treasury yield has fallen below the three-month Treasury yield, causing an inverted yield curve, which warns of an impending recession. Be careful what you wish for as the news sent stocks tumbling worldwide. Bose George with KBW points out that the refi “incentive” is “modest” and most pronounced for borrowers with note rates at 4.5%+ who have loans originated within the last year: about $550 billion, or around 15% of the GSE 30-year fixed-rate universe. Not all of these…(read more)

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