Interesting Article on Prices

Dealers are in no rush to return to carrying a large inventory and associated costs. Sell less cars, less sales staff needed, higher profit per car.
You can buy new cars from an order sheet and if you need a car right now, then buy a used vehicle off the lot but pay extra for no waiting. This is the new normal.

 

As a former mortgage banker I can tell you that the vast majority of lenders (over two thirds) sell their loans in the secondary market (Fannie Mae, Freddie Mac, etc) and are pricing their loans based on the required net yields of their investors. They make money on fees on the origination side and servicing the loans they sell (although some originators sell the servicing as well), not on collecting interest. While mortgage originators can price their loan higher to make a premium on the sale of a loan by charging a higher rate than their investors require, they would soon price themselves out of the market. It's an extremely competitive business that changes pricing daily based mainly on bond market conditions.

Required interest rate yields on Fannie Mae 10-day mandatory delivery commitments (promise to deliver loans to Fannie Mae) have gone from 2.59% in the beginning of January to 3.41% as of 2/18. Mortgage lenders aren't just making this up and stuffing more profits in their pocket. They are reacting to real conditions in the market they operate.

 

They've already raised their interest rates.

 

What he said!

 

What he said!

 

Y'all idiots need to stop paying the huge ass mark ups