Apparently, Wells Fargo & Co. is so hungry for 5/1 Freddie Mac LIBOR ARMs that itâs paying brokers two points (on top of the going) rate for the product. But there are strings attached: for condos and co-ops the loan must have a minimum LTV of at least 70%. Wells is telling its approved loan brokers that the 2% offer is for a limited time only. Meanwhile, it appears the yield on the 10-year Treasury has stabilized at 3.7% or so. But will the Federal Reserve continue to buy MBS to keep rates low? A new report from Deutsche Bank notes âTreasury purchases may have run their course in a matter of months, but MBS purchases should be around for longerâ...
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