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Old 05-24-2010, 08:26 PM
 
Location: Madison, Alabama
956 posts, read 2,500,870 times
Reputation: 278

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Just today I noticed on our MLS how low the rates were, for todays quotes.
A 30 year fixed FHA today was 4.25. 15 year fixed was 4%. Amazing! Then, I read this on Yahoo:
Mortgage Rates at New Lows, Thanks to Europe's Debt Crisis - Yahoo! Finance (http://finance.yahoo.com/news/Mortgage-Rates-at-New-Lows-cnbc-442681525.html?x=0&sec=topStories&pos=1&asset=&cco de= - broken link)
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Old 05-24-2010, 10:27 PM
 
Location: Las Flores, Orange County, CA
26,329 posts, read 93,761,592 times
Reputation: 17831
Great news for anyone looking to buy a home in the next few months. My current rate is 5-5/8% from a 2008 15 year loan. I think my mortgage in 1988 was close to 10% and my 1997 rate was around 6.5%.
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Old 05-25-2010, 06:17 AM
 
Location: Madison, AL
3,297 posts, read 6,266,015 times
Reputation: 2678
I had two clients who locked yesterday, and the lowest they could find (no points) was 4.5%. That was after rate shopping about 6 different lenders. But still a great rate, better than the 4.875% on Friday.
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Old 05-25-2010, 06:28 AM
 
9,803 posts, read 16,191,954 times
Reputation: 8266
I recall the high interest rates of the past.
I honestly believed I would never see interest rates below 10% in my lifetime

I wonder if today's home owners realize how fortunate they are.
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Old 05-25-2010, 06:42 AM
 
Location: Madison, AL
3,297 posts, read 6,266,015 times
Reputation: 2678
My parents had a 13% rate on a home they purchased in the 80's (courtesy of the Carter administration). Ouch.
Our first house was 7.25%, that was 10 years ago. I am VERY thankful for my 5.5% from 2006!

4.5 % is not a rate we have seen a lot of in the past few years, but it has gone there a few times in the past couple of years. It never has lasted more than a day or two.
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Old 05-25-2010, 07:49 AM
 
Location: Madison, Alabama
956 posts, read 2,500,870 times
Reputation: 278
Quote:
Originally Posted by marmac View Post
I recall the high interest rates of the past.
I honestly believed I would never see interest rates below 10% in my lifetime

I wonder if today's home owners realize how fortunate they are.
Most don't realize...even I at times get a bit "excited" when rates climb near 6%, lol. Those are still great rates. When I first got into the business, rates were 9-10% and we clipped along selling like it was no big deal! My parents had 18% and thought nothing of it, way back when
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Old 05-25-2010, 07:53 AM
 
Location: Madison, Alabama
956 posts, read 2,500,870 times
Reputation: 278
I also think refi's are going to pick up again...IF they can qualify. Need scores in the 720 range now to get the best rates. I think the national average is in the 690's now, which we used to consider wonderful.
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Old 05-25-2010, 07:56 AM
 
Location: Las Flores, Orange County, CA
26,329 posts, read 93,761,592 times
Reputation: 17831
Imagine how it might be at a cocktail party 12 years from now, telling your 26 year old next door neighbor who just bought his $210/sqft home with a 11.5% loan, about the 4.25% loan you used buy your $115/sqft home.
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Old 05-25-2010, 08:04 AM
 
46,281 posts, read 27,099,738 times
Reputation: 11126
I closed on 23 April with 4.75% (VA) for 30 years. Gotta love the low rates...
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Old 05-25-2010, 08:05 AM
 
13,811 posts, read 27,450,705 times
Reputation: 14250
As rates go down prices go up.

The inverse is also true.

If rates were 11% home prices would plummet.
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