Rate update! 30 YR Fixed back to 5.00%

[HLS]

After ticking up the last couple of days,
For those who qualify, rates are back to 5.00% today,
with 1/2 point cost…

Loan amounts to $417K, etc….
loans over 80% have same 5.00% rate, but mortgage insurance is extra…

The volatility in rates is insane…multiple intraday rate changes are common now.

Interesting times! >HLS

[peterb]

Rates should come down in a depression. I’m sticking to my 4.5% call. Maybe in a few more months?

[peterb]

Rates should come down in a depression. I’m sticking to my 4.5% call. Maybe in a few more months?

[peterb]

Rates should come down in a depression. I’m sticking to my 4.5% call. Maybe in a few more months?

[peterb]

Rates should come down in a depression. I’m sticking to my 4.5% call. Maybe in a few more months?

[peterb]

Rates should come down in a depression. I’m sticking to my 4.5% call. Maybe in a few more months?

[drunkle]

why would rates come down in a depression? ie., why would risk premiums go down in conditions of reduced employment, reduced economic activity, reduced stability and reduced investment activity?

[drunkle]

why would rates come down in a depression? ie., why would risk premiums go down in conditions of reduced employment, reduced economic activity, reduced stability and reduced investment activity?

[drunkle]

why would rates come down in a depression? ie., why would risk premiums go down in conditions of reduced employment, reduced economic activity, reduced stability and reduced investment activity?

[drunkle]

why would rates come down in a depression? ie., why would risk premiums go down in conditions of reduced employment, reduced economic activity, reduced stability and reduced investment activity?

[drunkle]

why would rates come down in a depression? ie., why would risk premiums go down in conditions of reduced employment, reduced economic activity, reduced stability and reduced investment activity?

[peterb]

That was my initial reaction as well. But it’s more about supply/demand for the actual interest rate or cost of the money. As now the market has lower rates, but down payments have become important again as has strict documentation. Risk will be better mitigated through lower LTV’s and better documentation. I think we’re seeing this now and will see it more inthe future. I would not be surprised to see real CPI going negative in 2009. Check out ECRI’s website for more on this. So, in essence the old 6% is the new 4%. Economics takes on a different set of rules when inflation is now longer running the game.

[peterb]

That was my initial reaction as well. But it’s more about supply/demand for the actual interest rate or cost of the money. As now the market has lower rates, but down payments have become important again as has strict documentation. Risk will be better mitigated through lower LTV’s and better documentation. I think we’re seeing this now and will see it more inthe future. I would not be surprised to see real CPI going negative in 2009. Check out ECRI’s website for more on this. So, in essence the old 6% is the new 4%. Economics takes on a different set of rules when inflation is now longer running the game.

[peterb]

That was my initial reaction as well. But it’s more about supply/demand for the actual interest rate or cost of the money. As now the market has lower rates, but down payments have become important again as has strict documentation. Risk will be better mitigated through lower LTV’s and better documentation. I think we’re seeing this now and will see it more inthe future. I would not be surprised to see real CPI going negative in 2009. Check out ECRI’s website for more on this. So, in essence the old 6% is the new 4%. Economics takes on a different set of rules when inflation is now longer running the game.

[peterb]

That was my initial reaction as well. But it’s more about supply/demand for the actual interest rate or cost of the money. As now the market has lower rates, but down payments have become important again as has strict documentation. Risk will be better mitigated through lower LTV’s and better documentation. I think we’re seeing this now and will see it more inthe future. I would not be surprised to see real CPI going negative in 2009. Check out ECRI’s website for more on this. So, in essence the old 6% is the new 4%. Economics takes on a different set of rules when inflation is now longer running the game.

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