回复：Why only JUMBO 30 yr fixed rate goes up?

"The rate may go lower in teh future when the turmoil settles." I agree with this statement. However, the risk is still pretty high that it may stay high for a long time.

About 4 to 5 years ago, I routinely bought and hold mortgage backed securities issued by Fannie Mae, Freddie Mac, and Ginnie Mae. But I haven't bought any new issues in the last 3 years because of the concerns about housing bubble. Now people are scared away by the implosions in the secondary mortgage market, the banks have to raise rates and tighten lending standards to lure them back. If the big buyers of mortgage backed securities like the Chinese government decide to stay away from this market because of the recent losses they suffered, it could take a long time for the market to recover. Therefore the high rate environment may stay longer than people expected. As a result, the RE market in expensive states such as CA, NY, NJ, MA, etc. may suffer more.

所有跟帖： 

• agree -表情符号- ♀ (0 bytes) () 08/08/2007 postreply 16:21:52

• 中国政府就是笨。只会给别人送钱。买那么多BOND亏。买BX -pediatrician2- ♂ (12 bytes) () 08/08/2007 postreply 16:28:15

• 中国领导要多来'理财投资',至少该知道活钱死钱的道理. -thornbird888- ♂ (18 bytes) () 08/08/2007 postreply 17:12:25

• No, it's not 笨。It's a choice of no choice! -miat42- ♂ (0 bytes) () 08/08/2007 postreply 17:13:08

• 对也不对,很难说,还是有私心做怪的成分. -thornbird888- ♂ (0 bytes) () 08/08/2007 postreply 17:19:52

• 就是这个理，自己没有人才可以硬碰硬 -抛玉引砖- ♂ (0 bytes) () 08/08/2007 postreply 17:26:31