I searched online for mortgage rates (30yr jumbo fixed) and ran across a listing with 28 lenders, including BofA and Union Bank.

Of the 28, 7 were advertising rates in the high 6% – 7% ranges; 13 advertised between 7.0% – 7.5%; 5 advertised between 7.5% – 8.0%; and 3 advertised rates above 8.0%.

So, there are direct lenders ADVERTISING their best rates as being above 8.0% and well as lenders advertising their best rates above 7.5%.

Bank of America is quoting 8.375%
Union Bank is quoting 7.65%
GE Money is quoting 7.560%
Countrywide is quoting 7.5%
San Diego National Bank is quoting 7.25%

I don’t see a 6.5% program anywhere among those lenders.

As I’ve said before, it isn’t even the actual number that counts, but the trend that should be catching your attention.

It has been mentioned before from a couple of our loan originator posters that advertised rates are not always the same as what a specific borrower and property can qualify for. Based on that, it’s reasonable to assume that a few of the sub 7.5% programs are not that widely available to actual buyers in this market.

Again, it isn’t what the best qualified buyers can do in this market that will determine what happens, but what is typical. If you think a 1% increase in long term interest rates doesn’t significantly affect the affordability index, especially in light of the reduced availability of alternatives, then I’d like to see your explanation.

And as long as we’re throwing down challenges, I’d still like to see your comments addressing the reduced sales volume that is in fact ocurring as we speak. All the proof we need that financing options are cutting into sales is staring us in the face.

We ARE on track for the worst year in sales volumes since 1996. That is a fact that I would like to see you address.