oldgrumpy
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Post by oldgrumpy on Jan 4, 2016 9:49:59 GMT
Interesting that today "computer says" 3 year Market Rate should be 3.8%* today (though RateTrends doesn't show it because 2016 does not appear to have been programmed in yet). How is 3.8% been deemed the AVERAGE of recent transactions? Have there been some well sub 3.8% to counteract the going rate for matchings made last Thursday before the New Year break? Was anyone watching how things were going last Thursday? I was not around so didn't see what was happening then. Was trade going on at about 4.3%? agent69 says so. Therefore a large amount will have been lent out at 3.3% to get an average of 3.8%, so did that happen? Last time I asked how a Market rate plummeted in a similar manner, the question was not addressed. * immediately accompanied (of course) by borrower offers below 3.8%. I just don't believe borrowers are invited to offer .... doesn't RS tell them what rate they will be required to pay?
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agent69
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Post by agent69 on Jan 4, 2016 18:21:43 GMT
Was trade going on at about 4.3%? agent69 says so. Not wishing to add to a conspiracy theory, but ......... It started off at £400k at 4.3%, with 50% going surprisingly quickly. Then between 31st December and 3rd January the £200k went down to 4.0% (I assume the same £200k) and then to 3.8%. The thing these 3 events had in common is the £200k was always at (or very near) the bottom of the queue, and there was almost nothing between the £200k and money at 5%.
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oldgrumpy
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Post by oldgrumpy on Jan 8, 2016 11:22:32 GMT
Interesting that today "computer says" 3 year Market Rate should be 3.8%* today (though RateTrends doesn't show it because 2016 does not appear to have been programmed in yet). westonkevRS Hi Kev .... can you give IT a nudge please? It's come up on another thread now.
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Post by westonkevRS on Jan 8, 2016 17:40:11 GMT
Nudge accepted...
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oldgrumpy
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Post by oldgrumpy on Jan 18, 2016 9:15:15 GMT
Interesting that today "computer says" 3 year Market Rate should be 3.8%* today (though RateTrends doesn't show it because 2016 does not appear to have been programmed in yet). westonkevRS Hi Kev .... can you give IT a nudge please? It's come up on another thread now. nuther nudge needed
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spiral
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Post by spiral on Jan 18, 2016 9:52:44 GMT
I can't understand how today's MR in 5 yr is 5.9% when it has been matching at between 6.2 and 6.4 for most of the weekend.
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oldgrumpy
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Post by oldgrumpy on Jan 18, 2016 10:03:33 GMT
I expect RS has been persuading people to "lend right now" at well sub 6% rates over the weekend (we don't see those loans) by flagging up "borrower" offers of 5.7% ish, then taking the average of the few transactions over the weekend, which is their way of "moderating" the Market Rate down for the start of the week. I saw the matching rate declining from a brief 6.4% on Friday, down through 6.2% while lender were doing some undercutting even lower over the weekend. (I didn't manage 6.4% - chickened out!) Undercut as much as you like, RS will often "find" a "borrower offer" one or two points lower in order to change their "lend right now" setting, which it seems plenty of lenders operate by.
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spiral
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Post by spiral on Jan 18, 2016 10:58:28 GMT
I also think one of the issues is that RS operates 24/7 but also only to banking hours so 3 days repayments go on offer on Monday but what period of matches is used for MR? Is it 72 hours or just the period of the previous day that would normally be used for a weekday calculation. If the latter, Monday's rate is calculated from a period of time that has few matches.
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pikestaff
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Post by pikestaff on Jan 18, 2016 11:14:33 GMT
I'm pretty sure that Monday's MR will mostly take into account Friday matches because there are so few over the w/e
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oldgrumpy
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Post by oldgrumpy on Jan 18, 2016 12:00:21 GMT
I'm pretty sure that Monday's MR will mostly take into account Friday matches because there are so few over the w/e If that is the case there must have been a lot of loans well below 5.9% in order to make the average end up there. I saw no 5.6/5.5 etc flagged up as "last matched" during the weekend which would cause this. RS make the game. We have to play it
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Post by yorkshireman on Jan 18, 2016 13:18:26 GMT
I'm pretty sure that Monday's MR will mostly take into account Friday matches because there are so few over the w/e If that is the case there must have been a lot of loans well below 5.9% in order to make the average end up there. I saw no 5.6/5.5 etc flagged up as "last matched" during the weekend which would cause this. RS make the game. We have to play it I refuse to play RS's game.
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oldgrumpy
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Post by oldgrumpy on Jan 18, 2016 13:29:44 GMT
If that is the case there must have been a lot of loans well below 5.9% in order to make the average end up there. I saw no 5.6/5.5 etc flagged up as "last matched" during the weekend which would cause this. RS make the game. We have to play it I refuse to play RS's game. Yep! Correction. We don't have to play it.
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Post by chielamangus on Jan 18, 2016 16:42:14 GMT
RS make the game. We have to play it Well, no. The trouble is it takes a long time to wind one's position down. RS does everything possible with its default suggestions and control of the monthly market to keep interest rates as low as possible. Obviously it's in their interest as it generates more loans and fees, but it ain't in our interest. Unfortunately I only tumbled to this after I had invested in some medium term loans.
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alender
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Post by alender on Jan 18, 2016 17:03:41 GMT
I agree, also do not forget the promotions that crash the rate, for me most of the time the interest rates do not reflect the risk. These policies also cause volatility of the rates which in the long term do not do anyone any good. If and when RS become a more significant player for investors I am not certain what the Financial Press will make of these policies. What RS do not seem to realise is that there are always borrowers but there comes a time when there are a few lenders and we will remember the way rates are driven down.
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agent69
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Post by agent69 on Jan 22, 2016 17:39:31 GMT
Despite the last matched rate being 6.1% in the 5 year market, all my 6.4% (about 5 of them) have been matched, and still more than £200k looking for a home. Are we looking for a long overdue rate blip?
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