Mortgage Rates

[PolarBearKing]

Did they really fall below 6% last week?

If so, how much farther do you experts predict thay will go?

 

[ultra26shadow]

Yeah the average now is about 5.75 on a 30yr fixed and about 5.375 on a 5/1 Arm

 

[TOBTEK]

we shall see by the end of the month. fed's meet again on the 29th I believe. Expecting ANOTHER 0.50% rate cut. Experts are saying "to little to late" Hard to stop this giant snowball.

HOW about the $1800.00 per married family rebate from the Gov. I sure dont see how thats going to change anyones life???

We have been seeing some great rates coming over. The ONLY thing stopping MANY refi's are the values. Appraisal reviews from the lenders are KILLING MANY files. I have one client that has been to 5 different lenders because of cut value. Comp's are tough out there.

 

[sleekcraft80]

Also, I have seen appraisers lowball properties as much as 5% so they don't get in trouble with the lenders. Great rates but no values. And the lenders are making it really hard also. There is a deal in congress right now to raise the ceiling on conforming loans from $417k to $615k so people can get the better rates without having to go with a jumbo loan.

 

[djunkie]

HOW about the $1800.00 per married family rebate from the Gov. I sure dont see how thats going to change anyones life???

.

Its not. Its just a way for our fearless leader to up his approval rating before hes out of office. Just my opinion.
________
Gn125e

 

[TOBTEK]

Also, I have seen appraisers lowball properties as much as 5% so they don't get in trouble with the lenders. Great rates but no values. And the lenders are making it really hard also. There is a deal in congress right now to raise the ceiling on conforming loans from $417k to $615k so people can get the better rates without having to go with a jumbo loan.

Sure hope that goes through. That will help alot of people/families. Plus the $417,600.00 conforming loan balance is unrealistic in most areas. Aren't they also trying for a temporary $ 750k conforming balance? Thought I heard something about that.

 

[justfloatn]

HOW about the $1800.00 per married family rebate from the Gov. I sure dont see how thats going to change anyones life???

Ditto.. all I see is a bunch of HD flat screens hanging in apartments and mobile homes. :skull

I wouldn't mind seeing 4.75 fixed 30 year come around again.

 

[TOBTEK]

Its not. Its just a way for our fearless leader to up his approval rating before hes out of office. Just my opinion.

I AGREE. Think its dumb. There has to be a better way to improve everyones financial statis with that money. Can you imagine what that will cost the gov? LAME!

 

[TOBTEK]

Ditto.. all I see is a bunch of HD flat screens hanging in apartments and mobile homes. :skull

I wouldn't mind seeing 4.75 fixed 30 year come around again.

ALTHOUGH....with the $1800.00 I could put a down payment for a set of twins like in your avatar pic for wifey. Those would be fun for the whole family :beer

 

[djunkie]

I AGREE. Think its dumb. There has to be a better way to improve everyones financial statis with that money. Can you imagine what that will cost the gov? LAME!

Ya really. What would an extra $1600-1800 for people really solve? Maybe I'm just being naive. Actually I'm just pissed cause it doesn't look like I'll qualify for any of it. :swear:swear
________
Full Melt Bubble Hash

 

[djunkie]

ALTHOUGH....with the $1800.00 I could put a down payment for a set of twins like in your avatar pic for wifey. Those would be fun for the whole family :beer

That $1800 wouldn't put a dent in what a good set costs. Thats why my g/f ain't getting them.
________
Ford forty-nine picture

 

[Cole Trickle]

I could use the $1800:beer

Won't do much but will help towards the spa fund

 

[justfloatn]

ALTHOUGH....with the $1800.00 I could put a down payment for a set of twins like in your avatar pic for wifey. Those would be fun for the whole family :beer

fftopic
Down payment is about it.. Wifey lost 15lbs more than when we met and after two kids the boobs and tummy needed to go in the shop. So about $10,000.00 later I have a 5' 1", 98 lb, D Cup spinner to play with at 35yrs old.. :beer :drool :drool

Best money ever spent...IMO

 

[sleekcraft80]

That $1800 would almost pay my house payment for one month

 

[DaveC]

whats the rate for a 30 year fixed non-conforming averaging?

 

[desertbird]

What $1800 tax break? Have I been under a rock?

 

[Jyruiz]

I thought it was $1600.00, makes no difference though, we probably won't qualify for it.

 

[catman-do]

we shall see by the end of the month. fed's meet again on the 29th I believe. Expecting ANOTHER 0.50% rate cut. Experts are saying "to little to late" Hard to stop this giant snowball.

HOW about the $1800.00 per married family rebate from the Gov. I sure dont see how thats going to change anyones life???

We have been seeing some great rates coming over. The ONLY thing stopping MANY refi's are the values. Appraisal reviews from the lenders are KILLING MANY files. I have one client that has been to 5 different lenders because of cut value. Comp's are tough out there.

I wouldnt say that the reviews are killing the files. The values arent there in the first place and many times we are seeing appriasers stretch value a little too much. However, Ive only had one appraisal cut and was able to get value back so that in the end it was only cut 2k, in order to make the loan work. Funded last week. I am a fairly straight shooter with my brokers though. I don't deal with slime ball brokers, and most of them know not to try and pass me something that stinks like shit.

 

[catman-do]

What $1800 tax break? Have I been under a rock?

If you are filing as single and make less than (I believe) 80k, then you get something like $800 back. If you are married and make less than 110 combined you get 1600 back. The govt did it back in 2001, they figure they give most of these people that make less money a little cash and they will just go blow it right back into the economy. Thus giving the economy a little boost. While it is actually a simulated boost, it pumps numbers and gets consumers confidence back up.

 

[catman-do]

Speaking of rates, I have been quoting a few 5.625 <.125> 30 fixed lately. Of course these are full doc, conforming, no MI, decent fico's, and fully amort.

 

[DaveC]

but of course... who doesn't do this.... :lmao

Of course these are full doc, conforming, no MI, decent fico's, and fully amort.

 

[PolarBearKing]

Speaking of rates, I have been quoting a few 5.625 <.125> 30 fixed lately. Of course these are full doc, conforming, no MI, decent fico's, and fully amort.

Sounds like this summer might be the time to make a move. :hmm

 

[TOBTEK]

CNNMoney.com
Read the Fed statement
Tuesday January 22, 8:31 am ET


The Federal Open Market Committee decided today to lower its target for the federal funds rate 75 basis points to 3.5 percent.
The committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth. While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households. Moreover, incoming information indicates a deepening of the housing contraction as well as some softening in labor markets.

ADVERTISEMENT


The committee expects inflation to moderate in coming quarters, but it will be necessary to continue to monitor inflation developments carefully.

Appreciable downside risks to growth remain. The committee will continue to assess the effects of financial and other developments on economic prospects and will act in a timely manner as needed to address those risks.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Charles L. Evans; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Eric S. Rosengren; and Kevin M. Warsh. Voting against was William Poole, who did not believe that current conditions justified policy action before the regularly scheduled meeting next week. Absent and not voting was Frederic S. Mishkin.

In a related action, the Board of Governors approved a 75-basis-point decrease in the discount rate to 4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Chicago and Minneapolis.




MAYBE a good time to start thinking about getting out of that adjustable rate mortgage... "IF" you have one.

 

[PolarBearKing]

MAYBE a good time to start thinking about getting out of that adjustable rate mortgage... "IF" you have one.

Shouldn't the question be more along the lines of, if you can qualify or if your home has enough equity in it?

Tobek, what does that article mean for mortgage rates?

 

[JB in so cal]

sooooooo, what kind of rate would someone be able to get with documented above average income, fico of 800+, and a low debt % on $417k and what would said payment be for that someone:hmm:hmm

 

[TOBTEK]

sooooooo, what kind of rate would someone be able to get with documented above average income, fico of 800+, and a low debt % on $417k and what would said payment be for that someone:hmm:hmm

WOW....Do you know someone with that criteria?

I'm waiting for the mid day price sheets from all of our lenders...should be interesting over the next few days.

 

[TOBTEK]

Shouldn't the question be more along the lines of, if you can qualify or if your home has enough equity in it?

Tobek, what does that article mean for mortgage rates?

You are right on the money! Thats the largest hurdle I've seen over the last few months.

 

[JB in so cal]

WOW....Do you know someone with that criteria?

I'm waiting for the mid day price sheets from all of our lenders...should be interesting over the next few days.

not me. I'm just wondering what someone would pay for what used to be the ONLY way to buy a house- - have great credit, prove how much you make, and don't borrow more than an average joe can afford.

 

[TOBTEK]

JOHN.... you and Lisa should be buying 1008 Brightwood anyway! Its back on the market again. Mid 500's would get it from the lender. Get Roz to set the pool equipment, and get it plastered..... its SOOO you :beer The house is PIMP inside.

 

[TOBTEK]

not me. I'm just wondering what someone would pay for what used to be the ONLY way to buy a house- - have great credit, prove how much you make, and don't borrow more than an average joe can afford.

I read the other day that if everyone had to go FULL doc, very few could obtain a new mortgage. Dont want to mis-quote, but it was a scary low %.

 

[John McGuinness]

Also, I have seen appraisers lowball properties as much as 5% so they don't get in trouble with the lenders. Great rates but no values. And the lenders are making it really hard also. There is a deal in congress right now to raise the ceiling on conforming loans from $417k to $615k so people can get the better rates without having to go with a jumbo loan.

Yeah, thats a great idea. Put the American taxpayer on the hook for these loans that were greatly over inflated in the first place. :smackhead
We need to let the values fall where they belong. Naturally. The disconnect between real incomes and home prices are still completely out of norm.

 

[Ivan Dan]

Here is a good article....

Fed Cuts Rate 0.75 Percentage Point in Emergency Move

By Scott Lanman

Jan. 22 (Bloomberg) -- The Federal Reserve cut the benchmark interest rate by three quarters of a percentage point, its first emergency reduction since 2001, after stock markets tumbled from Hong Kong to London amid increasing signs of a U.S. recession.

The central bank cut the target overnight lending rate to 3.5 percent from 4.25 percent, the Federal Open Market Committee said in a statement in Washington. Policy makers weren't scheduled to gather until next week. It's the biggest single reduction since the Fed began using the rate as the principal tool of monetary policy around 1990.

``Broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households,'' the Fed said in a statement in Washington. The FOMC took the action ``in view of a weakening of the economic outlook and increasing downside risks to growth.''

Policy makers set aside concerns about inflation to lower borrowing costs for the fourth time since September after the unemployment rate rose, retail sales fell and stocks slumped. Chairman Ben S. Bernanke shifted the Fed's stance to a more aggressive approach in remarks this month citing a need for ``decisive and timely'' action.

The dollar slid and Treasury securities rallied after the announcement. Stocks slumped as some investors questioned whether the Fed would be able to avert a recession, and then recouped more than half the losses. The Standard & Poor's 500 Index fell 0.5 percent to 1,318.28 at 11:15 a.m. in New York, after dropping as much as 3.8 percent earlier.

Bear Market

Yesterday, almost half of the world's biggest stock indexes fell into a bear market as mounting concern about a U.S. recession dragged down banking and retail shares across Asia, Europe and Latin America.

``The bottom line was that financial conditions were tightening sharply'' and affecting the economic outlook, said former Fed economist Brian Sack, who is now with Macroeconomic Advisers LLC in Washington. ``The view so far has been that they're somewhat behind the curve and needed to adopt a somewhat more aggressive approach.''

The Bank of Canada, in a scheduled meeting, lowered its main interest rate by a quarter point today to 4 percent and signaled it will act again to shield Canada from the U.S. slowdown. The Bank of England said it has no plans to change the date of its next rate decision. The bank's policy makers are due to begin a two-day meeting in London on Feb. 7.

Paulson Reaction

Treasury Secretary Henry Paulson called the Fed's move ``very constructive'' and a ``confidence builder,'' when asked about the Fed decision after a speech in Washington. He also said it was a sign to the rest of the world that the U.S. central bank is ``nimble.''

Paulson, charged by President George W. Bush last week with negotiating a fiscal stimulus plan with lawmakers, said a package ``must be enacted quickly.'' White House spokeswoman Dana Perino told reporters that the administration hasn't ruled out a proposal exceeding $150 billion.

The Fed Board of Governors, in a related move, lowered the so-called discount rate on direct loans to commercial banks by a 0.75 percentage point to 4 percent. The Chicago and Minneapolis district banks had requested the reduction, the Fed said.

``Appreciable downside risks to growth remain,'' the Fed statement said. ``The Committee will continue to assess the effects of financial and other developments on economic prospects and will act in a timely manner as needed to address those risks.''

Paulson says rate cut shows Fed 'nimble' enough to respond to crisis

Futures Contracts

Traders had anticipated 75 basis points of rate cuts this month, according to futures prices on the Chicago Board of Trade.

The FOMC vote was 8-1, with St. Louis Fed President William Poole preferring to wait until the regularly scheduled meeting. Fed Governor Frederic Mishkin was absent and not voting.

Fed officials met by video conference at about 6 p.m. yesterday, spokeswoman Michelle Smith said. Mishkin was traveling and unable to participate, she said. The voting members were the same as in 2007 because the presidents don't rotate in until the first regular meeting, Smith said.

Today's so-called inter-meeting rate cut is the first since Sept. 17, 2001, when the Fed lowered borrowing costs in the aftermath of the terrorist attacks six days before. That was the third emergency reduction in a year which saw the last U.S. recession.

Bernanke's Outlook

Bernanke warned in a Jan. 10 speech and again in testimony to Congress Jan. 17 that the 2008 economic outlook had worsened and ``the downside risks to growth have become more pronounced.'' Still, he said the Fed wasn't forecasting a recession this year.

Retail sales fell last month, unemployment rose, and housing markets are mired in the worst slump in 16 years. Homebuilders broke ground on the fewest homes since 1991 last month, Commerce Department figures showed Jan. 17. Building permits, a sign of future construction, declined by the most in 12 years, suggesting the housing slump will deepen.

Bernanke told legislators at the House Budget Committee that banks were trying to protect asset quality and funding, and tightening credit conditions for the rest of the economy as a result. ``Banks have also evidently become more restrictive in their lending to firms and households,'' he said. The Fed statement reprised the remarks today.

Fed policy makers have warned that housing will continue to be a damper on growth. Richmond Fed President Jeffrey Lacker said Jan. 18 that didn't expect homebuilding to ``bottom out'' in 2008. Bernanke said the day before that housing markets ``may continue to be a drag on growth for a good part of this year.''

 

[JB in so cal]

JOHN.... you and Lisa should be buying 1008 Brightwood anyway! Its back on the market again. Mid 500's would get it from the lender. Get Roz to set the pool equipment, and get it plastered..... its SOOO you :beer The house is PIMP inside.

can you also find someone to put a glass bubble over the lot so I don't hear every car hauling ass up that hill at 6:00am?

 

[TOBTEK]

can you also find someone to put a glass bubble over the lot so I don't hear every car hauling ass up that hill at 6:00am?

yeah, thats a kink. our old house was placed like that...got old.

 

[TOBTEK]

sooooooo, what kind of rate would someone be able to get with documented above average income, fico of 800+, and a low debt % on $417k and what would said payment be for that someone:hmm:hmm

JUST was quoted from one of our lenders for this sceniro... 5.375% 30 year fixed. ZERO loan orig fee, and NO discount fee.... Not bad.

 

[whiteworks]

JUST was quoted from one of our lenders for this sceniro... 5.375% 30 year fixed. ZERO loan orig fee, and NO discount fee.... Not bad.

what can you tell me about buying down the APR when restructuring a loan?

 

[JB in so cal]

JUST was quoted from one of our lenders for this sceniro... 5.375% 30 year fixed. ZERO loan orig fee, and NO discount fee.... Not bad.

..and the supposed payment on $417k would be?:hmm

 

[PolarBearKing]

..and the supposed payment on $417k would be?:hmm

Ya, inquiring minds wanna know...

 

[essexjet]

Thirty year fixed rate are going for 5% toady (conforming fannie mae)

I havent seen these rate for a long time. It started a little refinance boom in our office.

Principal and Interest 417,000 @ 5% would be $2238.55

 

[PolarBearKing]

There is a deal in congress right now to raise the ceiling on conforming loans from $417k to $615k so people can get the better rates without having to go with a jumbo loan.

I would like to see the conforming loans go up to the $600K range. It is so unrealistic to think that a $600K home requires a jumbo loan (and the higher rate) here in SoCal.

 

[TOBTEK]

Thirty year fixed rate are going for 5% toady (conforming fannie mae)

I havent seen these rate for a long time. It started a little refinance boom in our office.

Principal and Interest 417,000 @ 5% would be $2238.55

NICE TO HEAR the phone ringing more today. HOPE the rates stay lower for awhile. mid-days today

 

[essexjet]

NICE TO HEAR the phone ringing more today. HOPE the rates stay lower for awhile. mid-days today

Yeah that reprice this afternoon hurt a little. Glad I just locked a 5/1 I/O @ 4.5% before the reprice.

 

[EmpirE231]

what amount of documented income is required on a 400k loan? or what are the best rates for un-documented 30 year fixed with all the other good stuff... 750 +fico, reserves etc.

 

[cab_01]

JUST was quoted from one of our lenders for this sceniro... 5.375% 30 year fixed. ZERO loan orig fee, and NO discount fee.... Not bad.

No origination? What was he rebate?