Did you see that rates on 30 year mortgages falls to record low 3.87%?

But even with the cheapest home loan rate in history, the housing market remains depressed. Rates have been low for more than a year.
  • February 02 2012 - Louisville
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Answers (8)

Wayne, your answer was spot on. The current historically low mortgage rates are enticing, but many folks will be unable to obtain the best rates  due to a myriad of reasons. These are tough times and most of the 99% of us have been battered by the economy. Given that the Fed plans to keep rates low through 2014, there is still time for people interested in buying to improve their financial situation and obtain a terrific low mortgage rate.

 
  • February 03 2012
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Profile picture for Cindy Quinton
@Wayne, I appreciated the thoughtful post, and didn't read it as being aimed at anything but the original post.

People aren't buying because they can't....due to credit reasons, job reasons, tighter lending restrictions.....may still even be cheaper to rent, especially if you may need to pick up and move for a job. Some feel we haven't reached the bottom yet, and don't want to overpay and NEED to sell later.

Take us for instance, we lost our home in a tornado in May of last year, and we want to repurchase. However, we had spent our youth overextended credit wise and have lived for years without debt since getting everything paid off. We have sold our land and have in excess of 20% down. Husband has been on the same job for over 15 years and makes 70K plus. We had to go out and get secured credit cards and borrowed against a CD to get our scores up before we can borrow.

And yes, future clients are reading these forums.
  • February 03 2012
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Brian,
REALLY .....I didn't have you in mind but the last paragraph of your last post makes me think you obviously over reacted .
Since agent posted the question, my reply was to point out  the public's misconception of rates but didn't expect backlash from loan officer since my reply is factual. You may not think consumers read this blog but that is where 95% of the questions come from... If you are quoting 3.75% I am sure it is based on the factors I pointed out so why the attack on me.   
I have a 27 year track record of exceptional customer service but thank you for asking.
  • February 02 2012
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Rates are terrific....everyone seems to know it, too.   More folks have to go back to work.  The consumer confidence MUST be restored.  Only then will activity increase, property values begin to rise and a recovery be witnessed.

Until then...hang in there !
  • February 02 2012
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Thanks Wayne for your "brilliant insight".   This was not a potential client. It was posted by an agent.   The conversation was about why the housing market remains depressed DESPITE the low interest rates. It was not a request for a rate quote.

Try to stay on topic instead of ripping on other loan people.   Or maybe thats how you get your business, by putting other people down.  
  • February 02 2012
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The 30 yr rates are not at 3.75% or 3.875% for everyone.  Credit score, loan to value, zip code of property, loan amount, lender paid MI, cash out, refinance vs purchase, loan program, secondary financing, etc all come into play.  Discussing a rate like one "fits all" is misleading, and is a cause for consumers to be confused when they are quoted the rate for their particular scenario and think they are getting ripped off.
No lender can quote a rate without knowing all of the above plus debt to income ratio, job history, occupancy, co borrowers, and more as applicable.
  • February 02 2012
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That is the average 30 year fixed.   We are actually locking 3.75% no pt loans on conforming loans right now.

I think that with the strict underwriting guidelines making it harder and harder for people to qualify that there are a lot of people who would like to buy but still can't qualify.

Also the majority of the purchases I work on are for properties that are short sales and foreclosures. These cause the home prices and values to continue to drop which further inhibits a market recovery.   It also makes it harder for people to refi.   I had a client who refied with me in LA county over a year ago. At that time his appraisal came in at $700,000. today he is unable to refi again because his value has dropped down to $575,000. Lots of foreclosures in his area made him lose $125,000 in value in a years time.
  • February 02 2012
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Actually the Fed just came out and said they'll be keeping rates low until 2014.

Crazy . . .
  • February 02 2012
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