Jerry Wagner from Ibis sent out an interesting email about where rates might be headed… see below.
- The HECM locked rate is as of the date the borrower signs the App.;
- The HECM Principal Limit Factor lookup table use rates to the nearest one-eighths and
- Today’s rates are good until Monday evening the 29th.
And looking at the first four days of this week’s rates, the 10-year CM Treasury weekly average is likely to go up by 29 bp on Tuesday, and the 10-year swap rate weekly average is likely to go up by 36 bp.
That’s equivalent to a two-eighths or three-eighths percent change. A three-eighths rise will lower the benefits to the average HECM borrower by $8,000.
We’re not marketers and don’t know how senior citizens would feel if they were told that signing an application by Monday evening may give them considerable higher benefits.
We’ve never seen times like this.