I’m a big believer in self reflection, and when I am wrong, coming out and saying it. I wrote an article, let if float, where I, like pretty much everyone else in the industry, predicted rates would stay low. Unfortunately, the last week has taught us that these predictions were way off.
To the surprise of everyone who predicts rates, the 10-year treasury rallied pushing up borrowing costs across the board with residential mortgage rates rising nearly 25 percent. How can this be possible? A Republican president is historically fiscally conservative focusing on less taxes and smaller government. This theory has been thrown out the window with the new president.
As the old saying goes that your parents probably mentioned when you were a child: “You can’t have your cake and eat it too”. Unfortunately, economics is the same way, you can’t have everything. It is impossible to cut revenue (taxes) and increase costs (spending) without consequences. Any businessman knows this is the quickest ticket to insolvency.
- What drives treasuries and in turn rates?
- What does the rapid increase in treasuries mean to consumer rates?
- Why are rates actually moving?
- Why are rates moving so quickly?
- What will happen to rates in the future?
See the full article I wrote for the CO Biz magazine
Well’s Fargo Commentary on rates: this is an interesting article published by Well’s economists: https://www08.wellsfargomedia.com/assets/pdf/commercial/insights/economics/interest-rate-reports/irwk-20161116.pdf
Written by Glen Weinberg, COO/ VP Fairview Commercial Lending. Glen has been published as an expert in hard money lending, real estate valuation, financing, and various other real estate topics in the Colorado Real Estate Journal, the CO Biz Magazine, The Denver Post, The Scotsman mortgage broker guide, Mortgage Professional America and various other national publications.
Fairview is a hard money lender specializing in private money loans / non-bank real estate loans in Georgia, Colorado, Illinois, and Florida. They are recognized in the industry as the leader in hard money lending with no upfront fees or any other games. Learn more about Hard Money Lending through our free Hard Money Guide. To get started on a loan all they need is their simple one page application (no upfront fees or other games).