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Rates Tanking to 5.5%?

mukohmukoh
edited September 2008 in Seattle Real Estate
30 yr FNMA 5.5 Oct
100.26 +53/32 (+41/32 frm 10:00 Friday)

15 yr FNMA 5.0 Oct
100.12 +37/32 (+29/32 frm 10:00 Friday)

30 yr GNMA 5.5 Oct
101.09 +35/32 (+30/32 frm 10:00 Friday)

15 yr GNMA 5.0 Oct
100.17 +24/32 (+17/32 frm 10:00 Friday)

WOW!!
Is that even funny.

Comments

  • Charles DeanCharles Dean
    THey rose a little thruout the week last week, but on the news of Lehman and Merrill, everyone dumped into the bond market, so rates are good again.

    I think we may see them lower than 5.5% soon.
  • rose-colored-coolaidrose-colored-coolaid
    Charles Dean wrote:
    I think we may see them lower than 5.5% soon.

    Hi, I'm Hayes Barnum at Paramount Home Equity and the Fed has just opened the flood gates...
  • snigletsniglet
    I fully expect mortgage rates to drop even FURTHER before the end of this financial crisis. T-bills and GSE bonds will be bid up to ridiculous levels as investors scramble to find relative safety.

    Unfortunately, low mortgage rates won't necessarily help the real-estate market. If people are unable to qualify for loans as standards keep tightening, then even low rates won't matter. Neither will low rates be attractive for people concerned that they will lose their jobs.

    We could reach a point where few want to buy simply because they expect prices to keep falling and don't want to hold a depreciating asset, even if the mortgage rates are at historically low levels.
  • gooddealgooddeal
    Hi Sniglet, I just got pre-approved for a home loan. 5.5%, 97% LTV, no points, 1% origination fee. This will be my first time purchasing a home, ever, so I don't have much to reference against. I went to several mortgage brokers to shop around and I didn't have any problems getting pre-approved. Merely submitting an application and sending my W2, Paystubs, ID's and bank statements got me to that stage. I'm not familiar with the process so I need to ask, what part of the loan process is more difficult than previous besides not being able to do no doc? Would the financial crisis only hurt non-qualified buyers? So far it seems to me that if you have sufficient income to meet the required debt ratio and good credit getting a loan is still not difficult.

    PS. My loan amount is $344k and my combined annual income is only 113K.
  • perfectfireperfectfire
    gooddeal wrote:
    Would the financial crisis only hurt non-qualified buyers? So far it seems to me that if you have sufficient income to meet the required debt ratio and good credit getting a loan is still not difficult.

    Sure, but think about how much of the buying during the bubble was by non-qualified buyers. Some shouldn't have qualified for any loan (at least without a huge rate add to offset the risk) while many others shouldn't have qualified for loans as large as they got.

    (I assume by "hurt" you mean cause buyers to not be able to qualify for a loan.)
  • mukohmukoh
    Obviously the lending guidelines are tighter, however the regular vanila loans of few years ago are still plugging away at 3% down, 650+ score, documented income and assets. Seems to be no problems.
    Its all the people with No doc, no assets, no down, 600 credit score that are packing.
  • perfectfireperfectfire
    mukoh wrote:
    Its all the people with No doc, no assets, no down, 600 credit score that are packing.

    That was a big chunk of the market and most of the reason prices rose so high. Also people who might've been buying right now with documentation, assets, downpayments and decent credit scores aren't buying because they already bought with 0 down, no doc, no assets and 600 credit score 3 years ago.
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