Gov’t to target 4.5% for mortgages

[SD Realtor]

I would agree with that DW… However it seems that there are posts that do occassionally come up where people are questioning how buyers can come up with 20% down. Note I am not saying that any of this is a good thing because it really is not. Our government believes that the only way out of virtual insolvency is to… spend more! Hoooray!!! Like you I am a very frustrated saver.

Also the 20% down thing is not written in stone. I have a 3% FHA buyer closing escrow in mid December. He has the money to put down much more but is not doing so.

[NotCranky]

I wish there was less cheerleading and posturing going on on the on topic threads and more serious discussion about low interest rates in deflationary times.

Mish and Calculated risk had good articles on the topic. I am not saying we are going to have a brutal depression but the desperate measures, which the creation of 4.5% treasury sponsored interest rate and other business and employment related news are cause reflection on that period.

I don’t really understand so much but it seems the gist of it is that, adjusted for the current deflation and its potential, 4.5% interest loans for purchases could be very bad.Related to housing I think this will be true in areas where some homes are in price ranges where much or most of the air is yet to come out.

These rates coudl be a small boon to some minimallyleveraged refinancers, if it becomes a vailable to us but it shouldn’t be taken as a panacea to current buyer’s.

The government is trying to create a softer landing. That in itself is not cause for celebration.Probably the opposite is true. It is way too early to know where things go from here. Debt,on depreciating assets, even at 4.5% could equal poverty. I don’t think “cash is king goes out the window yet” and leveraged upscale private residences are very risky still.That said it probably will grease the wheels for Realtors.

Where is JWM when a thread needs him?

[NotCranky]

I wish there was less cheerleading and posturing going on on the on topic threads and more serious discussion about low interest rates in deflationary times.

Mish and Calculated risk had good articles on the topic. I am not saying we are going to have a brutal depression but the desperate measures, which the creation of 4.5% treasury sponsored interest rate and other business and employment related news are cause reflection on that period.

I don’t really understand so much but it seems the gist of it is that, adjusted for the current deflation and its potential, 4.5% interest loans for purchases could be very bad.Related to housing I think this will be true in areas where some homes are in price ranges where much or most of the air is yet to come out.

These rates coudl be a small boon to some minimallyleveraged refinancers, if it becomes a vailable to us but it shouldn’t be taken as a panacea to current buyer’s.

The government is trying to create a softer landing. That in itself is not cause for celebration.Probably the opposite is true. It is way too early to know where things go from here. Debt,on depreciating assets, even at 4.5% could equal poverty. I don’t think “cash is king goes out the window yet” and leveraged upscale private residences are very risky still.That said it probably will grease the wheels for Realtors.

Where is JWM when a thread needs him?

[NotCranky]

I wish there was less cheerleading and posturing going on on the on topic threads and more serious discussion about low interest rates in deflationary times.

Mish and Calculated risk had good articles on the topic. I am not saying we are going to have a brutal depression but the desperate measures, which the creation of 4.5% treasury sponsored interest rate and other business and employment related news are cause reflection on that period.

I don’t really understand so much but it seems the gist of it is that, adjusted for the current deflation and its potential, 4.5% interest loans for purchases could be very bad.Related to housing I think this will be true in areas where some homes are in price ranges where much or most of the air is yet to come out.

These rates coudl be a small boon to some minimallyleveraged refinancers, if it becomes a vailable to us but it shouldn’t be taken as a panacea to current buyer’s.

The government is trying to create a softer landing. That in itself is not cause for celebration.Probably the opposite is true. It is way too early to know where things go from here. Debt,on depreciating assets, even at 4.5% could equal poverty. I don’t think “cash is king goes out the window yet” and leveraged upscale private residences are very risky still.That said it probably will grease the wheels for Realtors.

Where is JWM when a thread needs him?

[NotCranky]

I wish there was less cheerleading and posturing going on on the on topic threads and more serious discussion about low interest rates in deflationary times.

Mish and Calculated risk had good articles on the topic. I am not saying we are going to have a brutal depression but the desperate measures, which the creation of 4.5% treasury sponsored interest rate and other business and employment related news are cause reflection on that period.

I don’t really understand so much but it seems the gist of it is that, adjusted for the current deflation and its potential, 4.5% interest loans for purchases could be very bad.Related to housing I think this will be true in areas where some homes are in price ranges where much or most of the air is yet to come out.

These rates coudl be a small boon to some minimallyleveraged refinancers, if it becomes a vailable to us but it shouldn’t be taken as a panacea to current buyer’s.

The government is trying to create a softer landing. That in itself is not cause for celebration.Probably the opposite is true. It is way too early to know where things go from here. Debt,on depreciating assets, even at 4.5% could equal poverty. I don’t think “cash is king goes out the window yet” and leveraged upscale private residences are very risky still.That said it probably will grease the wheels for Realtors.

Where is JWM when a thread needs him?

[NotCranky]

I wish there was less cheerleading and posturing going on on the on topic threads and more serious discussion about low interest rates in deflationary times.

Mish and Calculated risk had good articles on the topic. I am not saying we are going to have a brutal depression but the desperate measures, which the creation of 4.5% treasury sponsored interest rate and other business and employment related news are cause reflection on that period.

I don’t really understand so much but it seems the gist of it is that, adjusted for the current deflation and its potential, 4.5% interest loans for purchases could be very bad.Related to housing I think this will be true in areas where some homes are in price ranges where much or most of the air is yet to come out.

These rates coudl be a small boon to some minimallyleveraged refinancers, if it becomes a vailable to us but it shouldn’t be taken as a panacea to current buyer’s.

The government is trying to create a softer landing. That in itself is not cause for celebration.Probably the opposite is true. It is way too early to know where things go from here. Debt,on depreciating assets, even at 4.5% could equal poverty. I don’t think “cash is king goes out the window yet” and leveraged upscale private residences are very risky still.That said it probably will grease the wheels for Realtors.

Where is JWM when a thread needs him?

[SD Realtor]

Rustico why is this any news at all? I have been saying for two years that the government will do any and everything legally and probably illegal to do whatever it takes to avoid or simply delay the catastrophe. Call it cheerleading or posturing or whatever you like but identify it as what it is. I don’t think anyone at all agrees that in the long run this is good. Neither are loan reworks which in my opinion are illegal. Neither are foreclosure moratoriums. Spending taxpayer money and introducing legislation to stave off what is not good for anything.

However it should be acknowledged that these measures will have some sort of affect and will indeed increase activity and decrease the distress supply. The jury is still out on foreclosure supply but the stats on foreclosure forum show a hell of a large decrease for October of 08 and they will for November as well. Sales for November are up appreciably over November 07.

Call it what you like and I don’t see any Realtors here advocating a bottom of the market at all.

I wouldn’t call any of these measures a call for celebration as you implied. I would however not deny that the measures are not having an affect and if you feel talking about these measures as posturing then so be it.

[SD Realtor]

Rustico why is this any news at all? I have been saying for two years that the government will do any and everything legally and probably illegal to do whatever it takes to avoid or simply delay the catastrophe. Call it cheerleading or posturing or whatever you like but identify it as what it is. I don’t think anyone at all agrees that in the long run this is good. Neither are loan reworks which in my opinion are illegal. Neither are foreclosure moratoriums. Spending taxpayer money and introducing legislation to stave off what is not good for anything.

However it should be acknowledged that these measures will have some sort of affect and will indeed increase activity and decrease the distress supply. The jury is still out on foreclosure supply but the stats on foreclosure forum show a hell of a large decrease for October of 08 and they will for November as well. Sales for November are up appreciably over November 07.

Call it what you like and I don’t see any Realtors here advocating a bottom of the market at all.

I wouldn’t call any of these measures a call for celebration as you implied. I would however not deny that the measures are not having an affect and if you feel talking about these measures as posturing then so be it.

[SD Realtor]

Rustico why is this any news at all? I have been saying for two years that the government will do any and everything legally and probably illegal to do whatever it takes to avoid or simply delay the catastrophe. Call it cheerleading or posturing or whatever you like but identify it as what it is. I don’t think anyone at all agrees that in the long run this is good. Neither are loan reworks which in my opinion are illegal. Neither are foreclosure moratoriums. Spending taxpayer money and introducing legislation to stave off what is not good for anything.

However it should be acknowledged that these measures will have some sort of affect and will indeed increase activity and decrease the distress supply. The jury is still out on foreclosure supply but the stats on foreclosure forum show a hell of a large decrease for October of 08 and they will for November as well. Sales for November are up appreciably over November 07.

Call it what you like and I don’t see any Realtors here advocating a bottom of the market at all.

I wouldn’t call any of these measures a call for celebration as you implied. I would however not deny that the measures are not having an affect and if you feel talking about these measures as posturing then so be it.

[SD Realtor]

Rustico why is this any news at all? I have been saying for two years that the government will do any and everything legally and probably illegal to do whatever it takes to avoid or simply delay the catastrophe. Call it cheerleading or posturing or whatever you like but identify it as what it is. I don’t think anyone at all agrees that in the long run this is good. Neither are loan reworks which in my opinion are illegal. Neither are foreclosure moratoriums. Spending taxpayer money and introducing legislation to stave off what is not good for anything.

However it should be acknowledged that these measures will have some sort of affect and will indeed increase activity and decrease the distress supply. The jury is still out on foreclosure supply but the stats on foreclosure forum show a hell of a large decrease for October of 08 and they will for November as well. Sales for November are up appreciably over November 07.

Call it what you like and I don’t see any Realtors here advocating a bottom of the market at all.

I wouldn’t call any of these measures a call for celebration as you implied. I would however not deny that the measures are not having an affect and if you feel talking about these measures as posturing then so be it.

[SD Realtor]

Rustico why is this any news at all? I have been saying for two years that the government will do any and everything legally and probably illegal to do whatever it takes to avoid or simply delay the catastrophe. Call it cheerleading or posturing or whatever you like but identify it as what it is. I don’t think anyone at all agrees that in the long run this is good. Neither are loan reworks which in my opinion are illegal. Neither are foreclosure moratoriums. Spending taxpayer money and introducing legislation to stave off what is not good for anything.

However it should be acknowledged that these measures will have some sort of affect and will indeed increase activity and decrease the distress supply. The jury is still out on foreclosure supply but the stats on foreclosure forum show a hell of a large decrease for October of 08 and they will for November as well. Sales for November are up appreciably over November 07.

Call it what you like and I don’t see any Realtors here advocating a bottom of the market at all.

I wouldn’t call any of these measures a call for celebration as you implied. I would however not deny that the measures are not having an affect and if you feel talking about these measures as posturing then so be it.

[(former)FormerSanDiegan]

[quote=DWCAP]
I guess the real issue is that most of us were hoping for “our” time, a time when people who saved would be rewarded. But when is life ever fair? [/quote]

I am having a hard time figuring out why the prudent saver who is looking for a house for his/her family to live in is not being rewarded. If you have been waiting out the bubble and have been saving, your time is arriving. Recognize it.

Consider this, if you have been sitting out the bubble :

1. Prices down 25-40% in San Diego since 2005, currently at inflation-adjusted levels last seen in ~2001.

2. Interest rates are down to the 5% or lower levels.

Assuming prices have dropped by 35% or so, and mortgage costs have dropped by at least 20% for fixed rate mortgages. That is nearly a 50% drop in monthly costs for a comparable home.

If you have been sitting out the bubble, looking for an opportunity to prudently deploy your savings and are whining now about these circumstances, you cannot be helped.

[(former)FormerSanDiegan]

[quote=DWCAP]
I guess the real issue is that most of us were hoping for “our” time, a time when people who saved would be rewarded. But when is life ever fair? [/quote]

I am having a hard time figuring out why the prudent saver who is looking for a house for his/her family to live in is not being rewarded. If you have been waiting out the bubble and have been saving, your time is arriving. Recognize it.

Consider this, if you have been sitting out the bubble :

1. Prices down 25-40% in San Diego since 2005, currently at inflation-adjusted levels last seen in ~2001.

2. Interest rates are down to the 5% or lower levels.

Assuming prices have dropped by 35% or so, and mortgage costs have dropped by at least 20% for fixed rate mortgages. That is nearly a 50% drop in monthly costs for a comparable home.

If you have been sitting out the bubble, looking for an opportunity to prudently deploy your savings and are whining now about these circumstances, you cannot be helped.

[(former)FormerSanDiegan]

[quote=DWCAP]
I guess the real issue is that most of us were hoping for “our” time, a time when people who saved would be rewarded. But when is life ever fair? [/quote]

I am having a hard time figuring out why the prudent saver who is looking for a house for his/her family to live in is not being rewarded. If you have been waiting out the bubble and have been saving, your time is arriving. Recognize it.

Consider this, if you have been sitting out the bubble :

1. Prices down 25-40% in San Diego since 2005, currently at inflation-adjusted levels last seen in ~2001.

2. Interest rates are down to the 5% or lower levels.

Assuming prices have dropped by 35% or so, and mortgage costs have dropped by at least 20% for fixed rate mortgages. That is nearly a 50% drop in monthly costs for a comparable home.

If you have been sitting out the bubble, looking for an opportunity to prudently deploy your savings and are whining now about these circumstances, you cannot be helped.

[(former)FormerSanDiegan]

[quote=DWCAP]
I guess the real issue is that most of us were hoping for “our” time, a time when people who saved would be rewarded. But when is life ever fair? [/quote]

I am having a hard time figuring out why the prudent saver who is looking for a house for his/her family to live in is not being rewarded. If you have been waiting out the bubble and have been saving, your time is arriving. Recognize it.

Consider this, if you have been sitting out the bubble :

1. Prices down 25-40% in San Diego since 2005, currently at inflation-adjusted levels last seen in ~2001.

2. Interest rates are down to the 5% or lower levels.

Assuming prices have dropped by 35% or so, and mortgage costs have dropped by at least 20% for fixed rate mortgages. That is nearly a 50% drop in monthly costs for a comparable home.

If you have been sitting out the bubble, looking for an opportunity to prudently deploy your savings and are whining now about these circumstances, you cannot be helped.

[Author]

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