Gov’t to target 4.5% for mortgages

[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.

[carlsbadworker]

I think it is a good policy, but it’s surprising that it took so long for them to realize that. Even the non-economists on this board know, the only problem for the housing market is that it was not priced right. However, because most people are borrowers when it comes to the house purchase. Mortgage rates play part of the role in the overall pricing. I will say lower rate is better than lower price…because for one thing, it would provide less incentive for capable homeowners to abandon their homes which makes less financial sense every single day. If some of you think that housing market is in a turmoil right now, wait until everyone has -$500K negative equity. That is depression in my book.
I think 2009 is a great year to buy house at such 4.5% rate because I firmly believe inflation is on the horizon. For the record, I am not and will never be a gold bug. But Fed/Treasury has consistently showed that they will do whatever take (including keep the money printing press running at full speed) to avoid economy crisis. And guess what, I don’t know what day it will come, when they averted the last crisis, they would already erred on the inflation side. But because job market is a delayed indicator, the political pressure will be so great that they will not be able to curb the inflation in time.
2009 will be the best year to be buying your house. Heck, I am even trying to buy a house at the listing price (as long as it is in great condition and list price is below the market price) here in Temecula at the end of 2008.

[carlsbadworker]

I think it is a good policy, but it’s surprising that it took so long for them to realize that. Even the non-economists on this board know, the only problem for the housing market is that it was not priced right. However, because most people are borrowers when it comes to the house purchase. Mortgage rates play part of the role in the overall pricing. I will say lower rate is better than lower price…because for one thing, it would provide less incentive for capable homeowners to abandon their homes which makes less financial sense every single day. If some of you think that housing market is in a turmoil right now, wait until everyone has -$500K negative equity. That is depression in my book.
I think 2009 is a great year to buy house at such 4.5% rate because I firmly believe inflation is on the horizon. For the record, I am not and will never be a gold bug. But Fed/Treasury has consistently showed that they will do whatever take (including keep the money printing press running at full speed) to avoid economy crisis. And guess what, I don’t know what day it will come, when they averted the last crisis, they would already erred on the inflation side. But because job market is a delayed indicator, the political pressure will be so great that they will not be able to curb the inflation in time.
2009 will be the best year to be buying your house. Heck, I am even trying to buy a house at the listing price (as long as it is in great condition and list price is below the market price) here in Temecula at the end of 2008.

[carlsbadworker]

I think it is a good policy, but it’s surprising that it took so long for them to realize that. Even the non-economists on this board know, the only problem for the housing market is that it was not priced right. However, because most people are borrowers when it comes to the house purchase. Mortgage rates play part of the role in the overall pricing. I will say lower rate is better than lower price…because for one thing, it would provide less incentive for capable homeowners to abandon their homes which makes less financial sense every single day. If some of you think that housing market is in a turmoil right now, wait until everyone has -$500K negative equity. That is depression in my book.
I think 2009 is a great year to buy house at such 4.5% rate because I firmly believe inflation is on the horizon. For the record, I am not and will never be a gold bug. But Fed/Treasury has consistently showed that they will do whatever take (including keep the money printing press running at full speed) to avoid economy crisis. And guess what, I don’t know what day it will come, when they averted the last crisis, they would already erred on the inflation side. But because job market is a delayed indicator, the political pressure will be so great that they will not be able to curb the inflation in time.
2009 will be the best year to be buying your house. Heck, I am even trying to buy a house at the listing price (as long as it is in great condition and list price is below the market price) here in Temecula at the end of 2008.

[carlsbadworker]

I think it is a good policy, but it’s surprising that it took so long for them to realize that. Even the non-economists on this board know, the only problem for the housing market is that it was not priced right. However, because most people are borrowers when it comes to the house purchase. Mortgage rates play part of the role in the overall pricing. I will say lower rate is better than lower price…because for one thing, it would provide less incentive for capable homeowners to abandon their homes which makes less financial sense every single day. If some of you think that housing market is in a turmoil right now, wait until everyone has -$500K negative equity. That is depression in my book.
I think 2009 is a great year to buy house at such 4.5% rate because I firmly believe inflation is on the horizon. For the record, I am not and will never be a gold bug. But Fed/Treasury has consistently showed that they will do whatever take (including keep the money printing press running at full speed) to avoid economy crisis. And guess what, I don’t know what day it will come, when they averted the last crisis, they would already erred on the inflation side. But because job market is a delayed indicator, the political pressure will be so great that they will not be able to curb the inflation in time.
2009 will be the best year to be buying your house. Heck, I am even trying to buy a house at the listing price (as long as it is in great condition and list price is below the market price) here in Temecula at the end of 2008.

[carlsbadworker]

I think it is a good policy, but it’s surprising that it took so long for them to realize that. Even the non-economists on this board know, the only problem for the housing market is that it was not priced right. However, because most people are borrowers when it comes to the house purchase. Mortgage rates play part of the role in the overall pricing. I will say lower rate is better than lower price…because for one thing, it would provide less incentive for capable homeowners to abandon their homes which makes less financial sense every single day. If some of you think that housing market is in a turmoil right now, wait until everyone has -$500K negative equity. That is depression in my book.
I think 2009 is a great year to buy house at such 4.5% rate because I firmly believe inflation is on the horizon. For the record, I am not and will never be a gold bug. But Fed/Treasury has consistently showed that they will do whatever take (including keep the money printing press running at full speed) to avoid economy crisis. And guess what, I don’t know what day it will come, when they averted the last crisis, they would already erred on the inflation side. But because job market is a delayed indicator, the political pressure will be so great that they will not be able to curb the inflation in time.
2009 will be the best year to be buying your house. Heck, I am even trying to buy a house at the listing price (as long as it is in great condition and list price is below the market price) here in Temecula at the end of 2008.

[peterb]

Wouldnt it be great if Washington could get the mortgage rates to 4.5% for a 30 year loan!? But wouldnt be even better if they could do it without documentation and no proof of employment?! And how about make it a 95% LTV as well?! Oops, we just went through that and it caused the biggest RE dump in history.

Sorry folks, the party is over. Rates will probably come down a bit, but free and easy money is completely gone and that means RE will keep going down…….unemployment in 2009 will be the dagger in the heart.

[peterb]

Wouldnt it be great if Washington could get the mortgage rates to 4.5% for a 30 year loan!? But wouldnt be even better if they could do it without documentation and no proof of employment?! And how about make it a 95% LTV as well?! Oops, we just went through that and it caused the biggest RE dump in history.

Sorry folks, the party is over. Rates will probably come down a bit, but free and easy money is completely gone and that means RE will keep going down…….unemployment in 2009 will be the dagger in the heart.

[peterb]

Wouldnt it be great if Washington could get the mortgage rates to 4.5% for a 30 year loan!? But wouldnt be even better if they could do it without documentation and no proof of employment?! And how about make it a 95% LTV as well?! Oops, we just went through that and it caused the biggest RE dump in history.

Sorry folks, the party is over. Rates will probably come down a bit, but free and easy money is completely gone and that means RE will keep going down…….unemployment in 2009 will be the dagger in the heart.

[peterb]

Wouldnt it be great if Washington could get the mortgage rates to 4.5% for a 30 year loan!? But wouldnt be even better if they could do it without documentation and no proof of employment?! And how about make it a 95% LTV as well?! Oops, we just went through that and it caused the biggest RE dump in history.

Sorry folks, the party is over. Rates will probably come down a bit, but free and easy money is completely gone and that means RE will keep going down…….unemployment in 2009 will be the dagger in the heart.

[peterb]

Wouldnt it be great if Washington could get the mortgage rates to 4.5% for a 30 year loan!? But wouldnt be even better if they could do it without documentation and no proof of employment?! And how about make it a 95% LTV as well?! Oops, we just went through that and it caused the biggest RE dump in history.

Sorry folks, the party is over. Rates will probably come down a bit, but free and easy money is completely gone and that means RE will keep going down…….unemployment in 2009 will be the dagger in the heart.

[HLS]

IF the 4.50% rate actually happens, the restrictions and fees may be obscene, and not everyone will qualify.

I doubt it’s going to be a no cost loan.
For those that qualify, the rate is 4.99% RIGHT NOW.

If you don’t qualify, the rate doesn’t matter.

The govt doesn’t care about Southern California, they are trying to save the country.

Plenty of people in trouble have mortgages for less than $200K.

On a $200K loan the difference between 4.5% and 5% is $60 a month. On $300K it’s $90 a month.
Is this going to save the world ??

People with $100K loans are losing houses too.

It may not apply to refi’s, just purchases.

Eventually rates will go much, much higher.

Today’s rates are a gift, but ppl want to think that they will qualify if rates go lower. HLS

[HLS]

IF the 4.50% rate actually happens, the restrictions and fees may be obscene, and not everyone will qualify.

I doubt it’s going to be a no cost loan.
For those that qualify, the rate is 4.99% RIGHT NOW.

If you don’t qualify, the rate doesn’t matter.

The govt doesn’t care about Southern California, they are trying to save the country.

Plenty of people in trouble have mortgages for less than $200K.

On a $200K loan the difference between 4.5% and 5% is $60 a month. On $300K it’s $90 a month.
Is this going to save the world ??

People with $100K loans are losing houses too.

It may not apply to refi’s, just purchases.

Eventually rates will go much, much higher.

Today’s rates are a gift, but ppl want to think that they will qualify if rates go lower. HLS

[HLS]

IF the 4.50% rate actually happens, the restrictions and fees may be obscene, and not everyone will qualify.

I doubt it’s going to be a no cost loan.
For those that qualify, the rate is 4.99% RIGHT NOW.

If you don’t qualify, the rate doesn’t matter.

The govt doesn’t care about Southern California, they are trying to save the country.

Plenty of people in trouble have mortgages for less than $200K.

On a $200K loan the difference between 4.5% and 5% is $60 a month. On $300K it’s $90 a month.
Is this going to save the world ??

People with $100K loans are losing houses too.

It may not apply to refi’s, just purchases.

Eventually rates will go much, much higher.

Today’s rates are a gift, but ppl want to think that they will qualify if rates go lower. HLS

[HLS]

IF the 4.50% rate actually happens, the restrictions and fees may be obscene, and not everyone will qualify.

I doubt it’s going to be a no cost loan.
For those that qualify, the rate is 4.99% RIGHT NOW.

If you don’t qualify, the rate doesn’t matter.

The govt doesn’t care about Southern California, they are trying to save the country.

Plenty of people in trouble have mortgages for less than $200K.

On a $200K loan the difference between 4.5% and 5% is $60 a month. On $300K it’s $90 a month.
Is this going to save the world ??

People with $100K loans are losing houses too.

It may not apply to refi’s, just purchases.

Eventually rates will go much, much higher.

Today’s rates are a gift, but ppl want to think that they will qualify if rates go lower. HLS

[Author]

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