Gov’t to target 4.5% for mortgages

[CardiffBaseball]

Dupe

[alarmclock]

I’ve been eying an REO that is 40% off its Feb 2006 sale, it’s been lingering for a while because its a bit of a dump. If I can lock at less than 5%, I think I am going to pull the trigger. If I factor every possible expense that I can think of, including 1% for ongoing repairs, I’ll still be 10% lower than my current rent.

EDIT: Thank you, tax payers, for subsidizing my mortgage!

[alarmclock]

I’ve been eying an REO that is 40% off its Feb 2006 sale, it’s been lingering for a while because its a bit of a dump. If I can lock at less than 5%, I think I am going to pull the trigger. If I factor every possible expense that I can think of, including 1% for ongoing repairs, I’ll still be 10% lower than my current rent.

EDIT: Thank you, tax payers, for subsidizing my mortgage!

[alarmclock]

I’ve been eying an REO that is 40% off its Feb 2006 sale, it’s been lingering for a while because its a bit of a dump. If I can lock at less than 5%, I think I am going to pull the trigger. If I factor every possible expense that I can think of, including 1% for ongoing repairs, I’ll still be 10% lower than my current rent.

EDIT: Thank you, tax payers, for subsidizing my mortgage!

[alarmclock]

I’ve been eying an REO that is 40% off its Feb 2006 sale, it’s been lingering for a while because its a bit of a dump. If I can lock at less than 5%, I think I am going to pull the trigger. If I factor every possible expense that I can think of, including 1% for ongoing repairs, I’ll still be 10% lower than my current rent.

EDIT: Thank you, tax payers, for subsidizing my mortgage!

[alarmclock]

I’ve been eying an REO that is 40% off its Feb 2006 sale, it’s been lingering for a while because its a bit of a dump. If I can lock at less than 5%, I think I am going to pull the trigger. If I factor every possible expense that I can think of, including 1% for ongoing repairs, I’ll still be 10% lower than my current rent.

EDIT: Thank you, tax payers, for subsidizing my mortgage!

[Lyra]

If the government limits its “quantitative easing” to purchasing agency debt (as they have suggested), wouldn’t this have the net result of creating two mortgage markets with very different interest rates?

1. Conforming mortgages @ ~ 4.5%
2. Private mortgages @ > 6.0%

Furthermore, my understanding is that the cap on government loans is 115% of MSA median. For SD County, that will be around 550K next year and even lower in 2010.

To me, all this says that overpriced coastal real estate is toast. 4.5% will stabilize the bottom end and do next to nothing for high end (excluding the the truly high-end which operates under entirely different dynamics altogether).

There will be great wailing from coasts at this but there will be almost zero political will to extend gov efforts to the high end. How could fly-over state representatives ever be convinced that bailing out rich coastal homeowners is in the best interests of their constituents?

Maybe I’m dreaming, but I think this is the end for the coast. Give it a year or two and coastal declines will match or exceed inland declines. Yay!

Lyra the optimist.

[Lyra]

If the government limits its “quantitative easing” to purchasing agency debt (as they have suggested), wouldn’t this have the net result of creating two mortgage markets with very different interest rates?

1. Conforming mortgages @ ~ 4.5%
2. Private mortgages @ > 6.0%

Furthermore, my understanding is that the cap on government loans is 115% of MSA median. For SD County, that will be around 550K next year and even lower in 2010.

To me, all this says that overpriced coastal real estate is toast. 4.5% will stabilize the bottom end and do next to nothing for high end (excluding the the truly high-end which operates under entirely different dynamics altogether).

There will be great wailing from coasts at this but there will be almost zero political will to extend gov efforts to the high end. How could fly-over state representatives ever be convinced that bailing out rich coastal homeowners is in the best interests of their constituents?

Maybe I’m dreaming, but I think this is the end for the coast. Give it a year or two and coastal declines will match or exceed inland declines. Yay!

Lyra the optimist.

[Lyra]

If the government limits its “quantitative easing” to purchasing agency debt (as they have suggested), wouldn’t this have the net result of creating two mortgage markets with very different interest rates?

1. Conforming mortgages @ ~ 4.5%
2. Private mortgages @ > 6.0%

Furthermore, my understanding is that the cap on government loans is 115% of MSA median. For SD County, that will be around 550K next year and even lower in 2010.

To me, all this says that overpriced coastal real estate is toast. 4.5% will stabilize the bottom end and do next to nothing for high end (excluding the the truly high-end which operates under entirely different dynamics altogether).

There will be great wailing from coasts at this but there will be almost zero political will to extend gov efforts to the high end. How could fly-over state representatives ever be convinced that bailing out rich coastal homeowners is in the best interests of their constituents?

Maybe I’m dreaming, but I think this is the end for the coast. Give it a year or two and coastal declines will match or exceed inland declines. Yay!

Lyra the optimist.

[Lyra]

If the government limits its “quantitative easing” to purchasing agency debt (as they have suggested), wouldn’t this have the net result of creating two mortgage markets with very different interest rates?

1. Conforming mortgages @ ~ 4.5%
2. Private mortgages @ > 6.0%

Furthermore, my understanding is that the cap on government loans is 115% of MSA median. For SD County, that will be around 550K next year and even lower in 2010.

To me, all this says that overpriced coastal real estate is toast. 4.5% will stabilize the bottom end and do next to nothing for high end (excluding the the truly high-end which operates under entirely different dynamics altogether).

There will be great wailing from coasts at this but there will be almost zero political will to extend gov efforts to the high end. How could fly-over state representatives ever be convinced that bailing out rich coastal homeowners is in the best interests of their constituents?

Maybe I’m dreaming, but I think this is the end for the coast. Give it a year or two and coastal declines will match or exceed inland declines. Yay!

Lyra the optimist.

[Lyra]

If the government limits its “quantitative easing” to purchasing agency debt (as they have suggested), wouldn’t this have the net result of creating two mortgage markets with very different interest rates?

1. Conforming mortgages @ ~ 4.5%
2. Private mortgages @ > 6.0%

Furthermore, my understanding is that the cap on government loans is 115% of MSA median. For SD County, that will be around 550K next year and even lower in 2010.

To me, all this says that overpriced coastal real estate is toast. 4.5% will stabilize the bottom end and do next to nothing for high end (excluding the the truly high-end which operates under entirely different dynamics altogether).

There will be great wailing from coasts at this but there will be almost zero political will to extend gov efforts to the high end. How could fly-over state representatives ever be convinced that bailing out rich coastal homeowners is in the best interests of their constituents?

Maybe I’m dreaming, but I think this is the end for the coast. Give it a year or two and coastal declines will match or exceed inland declines. Yay!

Lyra the optimist.

[Arraya]

First of all, the whole idea is ass backwards. The economy is supposed to drive the housing market not the other way around. The Fed has everybody believing nonsense by taking trillions of dollars away from the productive economy and putting into the blackhole of Wall Street. They are either insane or have ulterior motives.

Second, the notion to jam credit down everbody’s throat is ridiculous and exposes the absurdity of the structure of our economy. The last thing the general public needs is more debt. They need less debt and a pay raise.

Sure, there is cash waiting on the sidelines getting ready to pull the trigger, because people think prices can fall no more, but they are dead wrong, and their necks are now ripe for strangulation.

We are now in a depression and it aint your grandma’s. This will be apparent by Feb with the exception of the most delusional.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aLgwfpZSD.R0&refer=home

U.S. companies slashed payrolls last month at the fastest pace in 34 years as the economy headed for its deepest and longest recession since World War II.

Employers cut 533,000 jobs, bringing losses so far this year to 1.91 million, the Labor Department said today in Washington. November’s drop exceeded all 73 forecasts in a Bloomberg News survey.

http://www.reuters.com/article/newsOne/idUSTRE4B01HI20081201

The U.S. credit-card industry may pull back well over $2 trillion of lines over the next 18 months due to risk aversion and regulatory changes, leading to sharp declines in consumer spending, prominent banking analyst Meredith Whitney said.

Chalk another one up for the tin foil crew…

http://www.dailypaul.com/node/74738

Un team warns of hard landing for the dollar.

In their annual report on the world economy published on Monday, the economists said the dollar’s sharp rebound this autumn had been driven mainly by a flight to the safety of the international reserve currency as the financial crisis spread beyond the US.

The overall trend remained a downward one, however, reflecting perceptions that the US debt position was approaching unsustainable levels. An accelerated fall of the dollar could bring new turmoil to financial markets.

snip

The report recommends reform of the international reserve system away from almost exclusive reliance on the dollar and towards a globally backed multi-currency system.

[Arraya]

First of all, the whole idea is ass backwards. The economy is supposed to drive the housing market not the other way around. The Fed has everybody believing nonsense by taking trillions of dollars away from the productive economy and putting into the blackhole of Wall Street. They are either insane or have ulterior motives.

Second, the notion to jam credit down everbody’s throat is ridiculous and exposes the absurdity of the structure of our economy. The last thing the general public needs is more debt. They need less debt and a pay raise.

Sure, there is cash waiting on the sidelines getting ready to pull the trigger, because people think prices can fall no more, but they are dead wrong, and their necks are now ripe for strangulation.

We are now in a depression and it aint your grandma’s. This will be apparent by Feb with the exception of the most delusional.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aLgwfpZSD.R0&refer=home

U.S. companies slashed payrolls last month at the fastest pace in 34 years as the economy headed for its deepest and longest recession since World War II.

Employers cut 533,000 jobs, bringing losses so far this year to 1.91 million, the Labor Department said today in Washington. November’s drop exceeded all 73 forecasts in a Bloomberg News survey.

http://www.reuters.com/article/newsOne/idUSTRE4B01HI20081201

The U.S. credit-card industry may pull back well over $2 trillion of lines over the next 18 months due to risk aversion and regulatory changes, leading to sharp declines in consumer spending, prominent banking analyst Meredith Whitney said.

Chalk another one up for the tin foil crew…

http://www.dailypaul.com/node/74738

Un team warns of hard landing for the dollar.

In their annual report on the world economy published on Monday, the economists said the dollar’s sharp rebound this autumn had been driven mainly by a flight to the safety of the international reserve currency as the financial crisis spread beyond the US.

The overall trend remained a downward one, however, reflecting perceptions that the US debt position was approaching unsustainable levels. An accelerated fall of the dollar could bring new turmoil to financial markets.

snip

The report recommends reform of the international reserve system away from almost exclusive reliance on the dollar and towards a globally backed multi-currency system.

[Arraya]

First of all, the whole idea is ass backwards. The economy is supposed to drive the housing market not the other way around. The Fed has everybody believing nonsense by taking trillions of dollars away from the productive economy and putting into the blackhole of Wall Street. They are either insane or have ulterior motives.

Second, the notion to jam credit down everbody’s throat is ridiculous and exposes the absurdity of the structure of our economy. The last thing the general public needs is more debt. They need less debt and a pay raise.

Sure, there is cash waiting on the sidelines getting ready to pull the trigger, because people think prices can fall no more, but they are dead wrong, and their necks are now ripe for strangulation.

We are now in a depression and it aint your grandma’s. This will be apparent by Feb with the exception of the most delusional.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aLgwfpZSD.R0&refer=home

U.S. companies slashed payrolls last month at the fastest pace in 34 years as the economy headed for its deepest and longest recession since World War II.

Employers cut 533,000 jobs, bringing losses so far this year to 1.91 million, the Labor Department said today in Washington. November’s drop exceeded all 73 forecasts in a Bloomberg News survey.

http://www.reuters.com/article/newsOne/idUSTRE4B01HI20081201

The U.S. credit-card industry may pull back well over $2 trillion of lines over the next 18 months due to risk aversion and regulatory changes, leading to sharp declines in consumer spending, prominent banking analyst Meredith Whitney said.

Chalk another one up for the tin foil crew…

http://www.dailypaul.com/node/74738

Un team warns of hard landing for the dollar.

In their annual report on the world economy published on Monday, the economists said the dollar’s sharp rebound this autumn had been driven mainly by a flight to the safety of the international reserve currency as the financial crisis spread beyond the US.

The overall trend remained a downward one, however, reflecting perceptions that the US debt position was approaching unsustainable levels. An accelerated fall of the dollar could bring new turmoil to financial markets.

snip

The report recommends reform of the international reserve system away from almost exclusive reliance on the dollar and towards a globally backed multi-currency system.

[Arraya]

First of all, the whole idea is ass backwards. The economy is supposed to drive the housing market not the other way around. The Fed has everybody believing nonsense by taking trillions of dollars away from the productive economy and putting into the blackhole of Wall Street. They are either insane or have ulterior motives.

Second, the notion to jam credit down everbody’s throat is ridiculous and exposes the absurdity of the structure of our economy. The last thing the general public needs is more debt. They need less debt and a pay raise.

Sure, there is cash waiting on the sidelines getting ready to pull the trigger, because people think prices can fall no more, but they are dead wrong, and their necks are now ripe for strangulation.

We are now in a depression and it aint your grandma’s. This will be apparent by Feb with the exception of the most delusional.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aLgwfpZSD.R0&refer=home

U.S. companies slashed payrolls last month at the fastest pace in 34 years as the economy headed for its deepest and longest recession since World War II.

Employers cut 533,000 jobs, bringing losses so far this year to 1.91 million, the Labor Department said today in Washington. November’s drop exceeded all 73 forecasts in a Bloomberg News survey.

http://www.reuters.com/article/newsOne/idUSTRE4B01HI20081201

The U.S. credit-card industry may pull back well over $2 trillion of lines over the next 18 months due to risk aversion and regulatory changes, leading to sharp declines in consumer spending, prominent banking analyst Meredith Whitney said.

Chalk another one up for the tin foil crew…

http://www.dailypaul.com/node/74738

Un team warns of hard landing for the dollar.

In their annual report on the world economy published on Monday, the economists said the dollar’s sharp rebound this autumn had been driven mainly by a flight to the safety of the international reserve currency as the financial crisis spread beyond the US.

The overall trend remained a downward one, however, reflecting perceptions that the US debt position was approaching unsustainable levels. An accelerated fall of the dollar could bring new turmoil to financial markets.

snip

The report recommends reform of the international reserve system away from almost exclusive reliance on the dollar and towards a globally backed multi-currency system.

[Author]

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