Reply to Trump orders fannie/fredde to buy mortgage bonds

Forum Index » Real Estate

Reply to "Trump orders fannie/fredde to buy mortgage bonds - rates dropping"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]it is better news for people and banks that hold long dated mortgage back bonds.

Flagstar Bank, Dime Community Bank, Bank of America have a lot of long date mortgages on their books that now have a big pop in value.

And places like Opendoor, Rocket Mortgage that do mortgage refinancings great news.

And not everyone refinances. I noticed in Spring  2020 to Spring 2022 a lot of higher coupon mortgages were not refinanced among well off people at a few banks that did a lot of CD specials in 2015-2020. As those CDs matured Spring 2020 to Spring 2022 a lot of customers just started prepaying mortgages rather than roll it over at near zero. Not a bad problem to have. But kinda silly to refinance when you have 5 year 100k jumbo CDs you took out in 2015, 2016 and 2017 maturing in March 2020, 2021 and 2022 at near zero you can just put towards mortgage.

I myself had a 150K one year CD maturing Fall 2020 and instead of refinancing I just put it towards principal.

Today for instance on My Fidelity Screen of the 2,000 Maryland Muni bonds for sale only three had a yield above 5 percent and they were long dated risk bonds.

As recently Fall 2024 there would be hundres of 5 plus muni bonds in Maryland some paying 5.5 percent tax free. Same goes for Treasuries. If we do get 100 BPs cuts in 2026 you might see a lot of people with car loans, mortgages, student loans, HELOCs etc start paying down debt as no point buying a 1 percent CD when you have a 6 percent mortgage.          [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics