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Mortgage rates drop fast after a shock jobs report sets off a series of dominoes
- quantified 3y ago> In our upside-down economy, where good news for ordinary people means bad news for financial markets, worries about an overheated labor market pushed 10-year Treasury yields to their highest level in 16 years in October. Financiers make money off the delta between what's paid to workers and what accrues to owners. Economic health should not be conflated with investor happiness. Sometimes they align but it's unfortunately us-vs-them between capital and labor.
- wrycoder 3y agoFrom 8.03% all the way down to 7.3%. Wowza.
- userinanother 3y agoYeah that’s an insane move
- thebigspacefuck 3y agoI really can’t tell if this is sarcasm or not.
- mjh2539 3y agoIt's not sarcasm.
- Turing_Machine 3y agoThe median home price in the United States is around $400K. If you finance that at 20% down for a 30 year term, you'll pay around $528K in interest at 8.03%, but only around $470K at 7.3%. Also, the monthly payment will be a couple of hundred bucks less. A percent or less adds up to big bucks when you're talking about hundreds of thousands of dollars financed over a 30 year term.
- userinanother 3y agoThe average motgage duration was something like 7 years so the net present value of that is in the 10-20k range but still big bucks.
- thunkshift1 3y agoI cant tell if this is sarcasm or not
- userinanother 3y agoNope 75bps would cost you a lot of money to buy down. It’s a big move unusually big
- rubiquity 3y agoIt’s important to note that the move down in rates happened when the Treasury announced they will be issuing primarily short term notes rather than long dated bonds.