Ben Eisen

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1,467 appearances 35 recordings 1 series first heard Jul 2017 last heard Nov 2024

Ben Eisen’s voice in public audio — every appearance, attributed to the second.

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WSJ Your Money Briefing · Why Mortgage Rates Haven't Fallen in Lockstep With Interest Rates · 11 Oct 2019 podcast

But what you're seeing here is a little bit different because lenders, if anything, are sort of overwhelmed with demand. matched

Rates have fallen enough that it's bringing in all of these folks who want to refinance their loans, but lenders really haven't kind of scaled up their businesses. matched

They cut back a lot last year and haven't really... matched

hired a tremendous number of people. matched

And because of that, they're sort of overwhelmed by demand. matched

So when you look at kind of the economics of the business, what they're doing is they're kind of keeping rates a little bit higher to manage that demand, which might mean like doing less loans, but at the same time, they're earning more per loan because of the higher rate. matched

Yeah, it's definitely been up a lot this year. matched

I mean, it's important to note that mortgage rates have fallen a lot more slowly than treasury yields, but they have fallen. matched

And that's been a boon to folks who might have bought a home last year when rates were near 5%, and now they're less than 4%. matched

So people still want to refinance, and they're kind of lining up to do so. matched

But they just might not get quite as low of a rate as they might expect going in. matched

Yeah, I mean, I think this is definitely one factor that's kind of kept a lid on the housing market. matched

You've seen home price growth start to cool over the last year. matched

You've seen sales be kind of lackluster. matched

And, you know, one factor in that is that, you know, rates while low are not, you know, so low that it would be a crime not to buy a house. matched

They're a little bit higher than sort of you might expect given how low the treasury yield is. matched

But I think what you see here, and we'll have to see how third quarter earnings come out for the big banks with large mortgage operations and the big non-bank lenders. matched

But even though they might be making fewer loans than they could if rates were lower, if they lowered rates more, they are making probably more per loan because of matched

sort of that differential that's widening between their cost of funding and the rate that they're charging on a loan. matched

Well, there are a lot of resources online that you can check out. matched

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