Rate update! 30 YR Fixed back to 5.00%

[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.

[cr]

I wonder how much of an uptick in home sales there’d be if rates went to 1%. My guess is the increase would be dissappointing. People finally realize prices are falling, are more worried about staying employed, and apparently banks are still not lending enough, though I hardly think increased lending is the solution.

Eventually they’ll figure out this has more to do with incomes than making money available to lend.

[cr]

I wonder how much of an uptick in home sales there’d be if rates went to 1%. My guess is the increase would be dissappointing. People finally realize prices are falling, are more worried about staying employed, and apparently banks are still not lending enough, though I hardly think increased lending is the solution.

Eventually they’ll figure out this has more to do with incomes than making money available to lend.

[cr]

I wonder how much of an uptick in home sales there’d be if rates went to 1%. My guess is the increase would be dissappointing. People finally realize prices are falling, are more worried about staying employed, and apparently banks are still not lending enough, though I hardly think increased lending is the solution.

Eventually they’ll figure out this has more to do with incomes than making money available to lend.

[cr]

I wonder how much of an uptick in home sales there’d be if rates went to 1%. My guess is the increase would be dissappointing. People finally realize prices are falling, are more worried about staying employed, and apparently banks are still not lending enough, though I hardly think increased lending is the solution.

Eventually they’ll figure out this has more to do with incomes than making money available to lend.

[cr]

I wonder how much of an uptick in home sales there’d be if rates went to 1%. My guess is the increase would be dissappointing. People finally realize prices are falling, are more worried about staying employed, and apparently banks are still not lending enough, though I hardly think increased lending is the solution.

Eventually they’ll figure out this has more to do with incomes than making money available to lend.

[cooperthedog]

[quote=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…[/quote]

What is the APR for this loan? (Assume a 300k loan, with $2500 in third party fees plus your fees).

[cooperthedog]

[quote=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…[/quote]

What is the APR for this loan? (Assume a 300k loan, with $2500 in third party fees plus your fees).

[cooperthedog]

[quote=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…[/quote]

What is the APR for this loan? (Assume a 300k loan, with $2500 in third party fees plus your fees).

[cooperthedog]

[quote=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…[/quote]

What is the APR for this loan? (Assume a 300k loan, with $2500 in third party fees plus your fees).

[cooperthedog]

[quote=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…[/quote]

What is the APR for this loan? (Assume a 300k loan, with $2500 in third party fees plus your fees).

[EconProf]

I’d bet on steadily lower rates for at least the next six months as the recession casts it deflationary pall over everything.
Until recently, I was a believer in inflation in the long term ultimately driving interest rates higher. But the deflationary atmosphere is just too powerful, and even the government’s upcoming massive deficit spending and the Fed’s loose monetary policy is, so far anyway, not enough to offset the psychology of deflation.
And yet, if I were a mortgage lender, I wouldn’t make a 30-year loan at 5%, or 6%, or 7%. Inflation’s day will come.

[EconProf]

I’d bet on steadily lower rates for at least the next six months as the recession casts it deflationary pall over everything.
Until recently, I was a believer in inflation in the long term ultimately driving interest rates higher. But the deflationary atmosphere is just too powerful, and even the government’s upcoming massive deficit spending and the Fed’s loose monetary policy is, so far anyway, not enough to offset the psychology of deflation.
And yet, if I were a mortgage lender, I wouldn’t make a 30-year loan at 5%, or 6%, or 7%. Inflation’s day will come.

[EconProf]

I’d bet on steadily lower rates for at least the next six months as the recession casts it deflationary pall over everything.
Until recently, I was a believer in inflation in the long term ultimately driving interest rates higher. But the deflationary atmosphere is just too powerful, and even the government’s upcoming massive deficit spending and the Fed’s loose monetary policy is, so far anyway, not enough to offset the psychology of deflation.
And yet, if I were a mortgage lender, I wouldn’t make a 30-year loan at 5%, or 6%, or 7%. Inflation’s day will come.

[EconProf]

I’d bet on steadily lower rates for at least the next six months as the recession casts it deflationary pall over everything.
Until recently, I was a believer in inflation in the long term ultimately driving interest rates higher. But the deflationary atmosphere is just too powerful, and even the government’s upcoming massive deficit spending and the Fed’s loose monetary policy is, so far anyway, not enough to offset the psychology of deflation.
And yet, if I were a mortgage lender, I wouldn’t make a 30-year loan at 5%, or 6%, or 7%. Inflation’s day will come.

[Author]

Posts