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Replies (20)
- Greg Darlin, "Greg Darlin"
- Contributions:3238
I got e-mails from clients in my pipeline saying maybe they should wait to refi because of the new upcoming Treasury deal to have mortgages at 4.50. But, the deal is only for purchase money. So, many will wait, hoping to get 4.50 and in the interim, their home values will sind another 90% totally taking them out of the market. Whew, whew!
Where did this come from 'only for purchase money'??? I heard it was across the board... meanwhile, we all KNOW what this really is. A media blitz bought and paid for by NAR etc... to force the government's hand. If people aren't buying at 5.25%, what makes them so sure people will buy at 4.5%????? So aggravating.
- Greg Darlin, "Greg Darlin"
- Contributions:3238
Go online to the article in the Washington Post. Here is a piece of it:
WASHINGTON -- The Treasury Department is considering a plan to revitalize the U.S. home market that would push down interest rates for loans to purchase a home, according to people familiar with the matter.
The plan, which is in the development stage, would temporarily use the clout of mortgage giants Fannie Mae and Freddie Mac to encourage banks to lend at rates as low as 4.5%, more than a full point lower than prevailing rates for standard 30-year fixed-rate mortgages.
Government officials are under pressure to address falling home prices and mounting foreclosures, which underpin the financial crisis. The Treasury ...
yeah, but it's all speculation at this point anyway. Who knows what they WILL do, and what the rates WILL be.
Why is the media spreading this misinformation???? What do they have to GAIN by pulling this stunt?????
- Greg Darlin, "Greg Darlin"
- Contributions:3238
News and this stuff has a lot of sizzle. Since when has the media really covered info accurately, especially about mortgagge rates?
- Clay Branch, "Georgia Loans"
- Contributions:7839
never
- Tammy Stockdale, "Colorado Mtg Broker"
- Contributions:6995
.......Especially about anything......
- Chris Corica, "Chris Corica"
- Contributions:1075
Just what we need. Rates are already low and now everyone has a reason to wait thinking they will catch the bottom and risk missing it all. When progress looks on the horizon we can't seem to get out of our own way.
- Texas Banker
- Contributions:517
This is what one of my borrowers said today:
"I will wait some more. I saw a heading that govt is planning for 4.5% mortgages." (his rate is almost 7% BTW).
OMG government is planning???? I thought the free markets were supposed to decide that.... Have we not learned anything over the past centuries, when ever you have government stack the deck of cards it always comes crashing down in a big way.
Am I missing something?
Maybe the housing market bubble burst because prices were unsustainable in the long run given the facts on the ground, and here we are trying sustain un-sustainable prices by artificially manipulating the interest rates.
- Tammy Stockdale, "Colorado Mtg Broker"
- Contributions:6995
Everyone be prepared, put your bullet proof vests on and football helmets, it will all be our fault when rates go from 5% to 6% and no one locked in when they should have. I explain rates as a gamble. When you're up $500 why don't you walk away (although I don't actually do that, but that's another story), otherwise you'll end up down $500. Take what you can get when it's decent.
Soc- I think the point is that when it DOES happen, it won't do any good.
- Tammy Stockdale, "Colorado Mtg Broker"
- Contributions:6995
Then they'll wait till it hits 3.5%
- Socialist
- Contributions:446
Nah no reason to wait for 3.5%.
4.5% is basically free money when you factor in inflation and tax deductions. Anything lower is unfeasible as banks would basically be paying you to borrow their money.
Of course it will do good Jennifer, for those who qualify.
- Tammy Stockdale, "Colorado Mtg Broker"
- Contributions:6995
It was a joke Socialist....
- Greg Darlin, "Greg Darlin"
- Contributions:3238
Soc,
So far, the information concerning rates going to 4.50 is for people who are looking to purchase homes and not for us who want to refinance. I seriously doubt they will offer 4.50 to current mortgage holders. No reason to as the rates are about at 5.00 now. What is the incentive?
The whole incentive to offer those proposed rates to homebuyers is to stop the bleding of home values as it will temporarily rid the market of so many foreclosures.
- Socialist
- Contributions:446
Cause we all know there is a huge pool of homebuyers waiting to gobble up homes once rates hit that floor!
I am sure Treasury will have lower rates for purchases, but refinances will not be far behind.
- Kevin Hancock, "khancockloans"
- Contributions:24
Rather than driving rates down by purchasing securities, the feds should determine the criteria for qualification and then subsidize interest rate buy-downs. This could move people off the sidelines and stabalize home prices, rather than creating a temporary spike in demand and subsequent correction.
They should also work on tax incentives that motivate qualified buyers to take action. As long as people think there is a benefit to waiting the market will continue to deflate.
- Martin Wareing, "Martin Wareing"
- Contributions:3772
We should all look at the BIG TENT SALE (Clowns and all) at your local GM DEALER... 0% financing and sales are only down 40% YOY.... It is simply a ploy.. 4.5% and 5.5% for $200,000 is (drumroll please) $122/month... I am not saying it is not $122/month..but it will not pay for the monthly "Pat Riley HAIR gel bill that ARA racks up... it is a nominal all inclusive cell phone bill... nice, but not a WORLD GDP solver and not a bottom-placer... add 3-4% to unemployment (other industries besides ours) and 4.5% or 5.5% will not matter at all. Again, we are there.. HANK leaked it out of his crooked broken PINKIE (hmmmmmmmmmmm) like all other WS loser CEOs propping up the market for as long as they can. I see the Stock Market LOVED IT today thought (clap-clap-clap-clap). He is a very opaque person and I have studied his stutter... There is an online course taught by Mel Tillis and he says there is hidden meaning in the stutter and the Divining Pinky of Hank's.... stay tuned..
- Kevin Hancock, "khancockloans"
- Contributions:24
Propping up the housing market = bad / artificial
Stabalizing the housing market = good / sustainable
here we go...
People looking to refinance when they just closed at 5.5%, or 5% even!!! And people are quoting on it, API of course... Oh my, it's going to be a fun few days.
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