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Have Mortgage Rates Bottomed?

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  • Description

    Sanjiv Das, CitiMortgage CEO, on current mortgage interest rates and his outlook for 2013.

  • Duration 3:55
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This transcript is automatically generated

So earlier -- -- got a chance to speak assigned you -- he's the CEO of Citi mortgage.

-- -- Thirty year mortgage rates hovering at a four month high of around three -- half percent.

But mortgage applications continue to rise so is this a sign that rates bottoms.

Knowing that -- -- -- my next guest on G stocks he's the CEO of Citi mortgage and -- -- we're so thrilled.

To have you back welcome and thank you so interest rates rising still historic lows you are quick to point out smear earlier.

But even -- a couple of points can translate into thousands of extra dollars added to the purchase price of the home what you taking what's driving reits right now.

Well there's been a lot of uncertainty in our US treasuries in the last couple of weeks Hillary.

Mainly because a lot of investors.

Switched to buying European sovereign bonds.

And so that caused the US treasury to blow up a little bit and caused mortgage rates to go up a little -- as well.

-- does have anything to do more with the US.

Domestic economy that picture looking a little better in certain respects housing market in particular seems to be one of the brightest spots of an otherwise lackluster US economy.

But the US economy particularly in housing in the last year has shown a lot of strength.

But I think -- -- drives that happened last week was mainly because of relative -- strength.

In in the European economy -- -- but the US economy has been strong and housing of that said house press has spent a five and a half percent given Europe.

And this has been a much more widespread growth in -- questions and we had seen about six months of.

At thirty year fixed is at the low 3.3.

1%.

That was last fall will rates fall.

Back to that level anytime -- or have we seen it for good considering fed at the Fed's accommodative policy and whatnot.

But it's hard to predict and -- said that these things are and I'm not trying to hedge -- -- but these things are function off.

Residents spent relative perceived strength in different economies.

I would say that.

They're likely to be range bound -- in the order of you know two point 62 point 75%.

Which is still a very very -- if you consider those rates with ideas.

So -- reporting on.

You're seeing considerable demand for mortgage products.

In -- off this would -- -- what is that attributable to then is it because people are rushing to lock in these rates because they fear that they are going to rise higher.

There's definitely a little bit of that we saw in the last couple of -- series so -- -- -- up but.

Refinancing applications also went up.

We -- seeing a very strong refi demand we've been seeing that consistently for the most beautiful quarter that's.

And -- the Consumer Financial Protection Bureau put out a list.

Of regulations.

For the mortgage industry really didn't declaring and telling you what types of mortgages you can offer to certain types of creditors.

And there was some fear leading up to this list there -- anticipation what it would say and who would it affect whether or not it would curb the industry.

What's your take on it how has it influence how you're doing business.

My take on it is that it's very good it's very -- really salute to the borrower it's very it makes the industry.

That much more.

Responsible for.

Giving the right products to the right sets of consumers can -- -- specific examples -- how -- beneficial so for example it says that loans that are interest only.

Would not be qualified anymore.

That means that consumers.

Would essentially be solar principal and interest mortgages and so there's no surprises at the end of five yes we do -- suddenly spiking up.

All your payment suddenly spiking up if you have to now start this must -- a principal.

So there -- some very PO guidelines and I would say that by and large.

Most of the responsible banks that are responsible than a big players had adopted it any -- like us lake city had.

But it's a lot of kids on the fringe that this release of some draws -- draws -- the boundaries for.

That information Sanjay -- Citi mortgage CEO thank you for being my guest today.

Thank you are.

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