Elevator UP!

The recent climb of mortgage rates has everyone clamoring. Why though in a three week span can rates go from 4.75% to 5.75%? The reason is too much supply and not enough demand. The mortgage backed security market is made up of just that "mortgages." Rates have been so good for an unbelievable amount of time, that many of you who have owned for just 6 months, have been able to benefit from the new lower rates. That puts more supply because refinance loans become the mortgages in the mortgage backed security market. Figures came out yesterday stating that 70% of all transactions are refinances. That is up so much from this time last year. The government is also auctioning t-bills what seems like every other day. These factors have investors, wall street, main street, and the world now worried about inflationary risks.
What do we do? Maybe that is the problem, maybe everyone is doing too much to try and fix the problems instead of letting them correct themselves.
The past 4 years brought much to the forefront on laxed loan guidelines and interpretation of those guidelines. The government has made laws, to fix everything. They have said there shall be no more stated loans...the market got rid of stated loans six months prior to the ruling. The government, "to protect consumers and banks" has placed the HVCC into effect. It is a law that governs how appraisals can be ordered and who can speak to the appraiser. It is to help decrease pressure on appraisers to deliver appraisals that are above value or not disclosing certain issues with properties. Every lender I work with has a black ball list. If an appraiser is found to be fraudulent in any manner, they will no longer accept that appraiser's reports. The banks were self policing. Now we have this new rule, that is more expensive for consumers, and takes about 4 times as long to complete. If the government would let free enterprise do its jobs, the banks would have fixed it, because it is their bottom lines getting desimated, not the governments. But now that the government is in the business of big banking, I guess they want a safety net.
I am done ranting for today. Until the next new issue...or wave of crazy changes.