When does the "spring" housing market start to open up? (refinancing, good credit)

[WhoFanMe]

Originally Posted by Northern Maine Land Man

"30 days is comfortable. I've squeezed some through sooner, but everything needs to line up correctly, i.e. inspections and re-negotiations, good lender and title company and a willingness from both parties to proceed to the end result."

- - -

Sometimes it can happen is six days. ;-)

I'm assuming that's a cash transaction!

[WhoFanMe]

Originally Posted by amyd83

Yes - rates are down another 3/4 of a point. It is a beautiful thing to us buyers out there! Mortgage should be down to about 5.25%

Wait! This is not true. The Fed lowered its overnight lending rate by three-quarters of a percentage point, to 3.50%

Fixed mortgage rates are tied to long-term bond yields that move based on the outlook for the economy and inflation. This move might impact adjustable rate mortgages that are tied to that index, but may have little or no effect on 30 year fixed mortgages.

Please do not expect to see 30 year fixed rates drop by that same 75 basis points!

[CapeCodder]

Originally Posted by WhoFanMe

30 days is comfortable. I've squeezed some through sooner, but everything needs to line up correctly, i.e. inspections and re-negotiations, good lender and title company and a willingness from both parties to proceed to the end result.

Our buyers wanted to close fast...we closed in around 2 1/2 weeks. It was the fastest closing my realtor had seen. Fine by me!

The trouble with buying a house in Maine in early spring is the snow. Our inspector couldn't get on the roof, it was a pain to do the sewer tests too. Plus you can't really see the grounds.
As you can tell, it didn't stop us!

[Zymer]

Originally Posted by WhoFanMe

Wait! This is not true. The Fed lowered its overnight lending rate by three-quarters of a percentage point, to 3.50%

Fixed mortgage rates are tied to long-term bond yields that move based on the outlook for the economy and inflation. This move might impact adjustable rate mortgages that are tied to that index, but may have little or no effect on 30 year fixed mortgages.

Please do not expect to see 30 year fixed rates drop by that same 75 basis points!

I was thinking the same thing, since I was all into that question recently. It takes a while to see any effect on mortgage rates. Seeing as how I was being quoted a rate of 7.825% when I started shopping for a loan in Aug, I thought I was ahead of the game to get 6% last week.

[mainerontheloose]

Hi Kaby,

Things seem to start jumping back on the market around March, but it has already started to pick up here. It wouldn't hurt to check out the local broker's MLS search tools or have a broker set up one for you, so that you could monitor the situation carefully. We liked using the search or Maine Real Estate, Maine Realtor, Auburn Real Estate, Lewiston Real Estate, Androscoggin County Real Estate, Tanya Busch, Maine MLS Search, Homes in Poland Maine, Homes in Auburn Maine, Homes in Lewiston Maine, waterfront properties in Maine, Hallowe
You may find it useful too.

[CapeCodder]

Out of curiosity...what do the realtors on the board (or anyone really) think the 30 year fixed rates will go to? Assuming no points.

I had a rate of 5.5 on my other house...but the rate for this house is at 6.42. I would love to refinance when it drops.

[maine4.us]

Once the dust settles on the sub-prime mortgage mess, I think rates will go down. I just purchased a house in Maine, and I had no problem getting financing. And I financed with a bank 1700 miles from Maine. The rate was a little higher than I wanted, but it was still a great deal. Rates are still lower than they have been for many years. The rate was 6.23%.

My idea: Since the banks have lost money, and the housing market is flat, how do you make money (if you are a bank)? You lend money, that is how! Creditworthy people are the way that the bank can make some of their losses back. So, why not lower the rates, and finance people who CAN pay back a mortgage. Since the sub-prime guys are basically out of the market, only people with a good credit score will be financed. Now, people with good credit scores can use those scores to shop around for a better rate. So, the banks can either sit on their money and forgo interest, or loan money at a lower rate to good risks and start the old cash cow (interest) going again.

Greed got us into this mess, honest good credit risks will get us out of it.

Just my idea, and of course I could be wrong. Just think about it, how are the banks going to make up their losses. Once again, loan money. The real question is how long the banks will stay clammed up with their money. I would guess until after the November elections, but maybe sooner. \

I would say cash buyers, go for it now!!!

[amyd83]

Originally Posted by Zymer

I was thinking the same thing, since I was all into that question recently. It takes a while to see any effect on mortgage rates. Seeing as how I was being quoted a rate of 7.825% when I started shopping for a loan in Aug, I thought I was ahead of the game to get 6% last week.

On Sunday, I was quoted 5.5% by a national lender...30 year fixed - 10% down, bank paid PMI on $380k mortgage.

[Zymer]

Originally Posted by amyd83

On Sunday, I was quoted 5.5% by a national lender...30 year fixed - 10% down, bank paid PMI on $380k mortgage.

Yes, I could have got a better rate if I had wanted to put down the 10%, but I wanted to keep the cash for improvements and repairs that need to be done. I can re-fi in as little as 60 days if the rate goes low enough to make it worthwhile. I'm also making the first payment *today* instead of waiting until 1 MAR when it's due, and making 1/2 payment every two weeks.

[Northern Maine Land Man]

Wise move, Zymer.

A 30 year fixed with no money down is 5.75% today with no points. That's before the fed cut. You can expect mortgage rates to move half what the fed does. When the fed drops 3/4 of a percent you should expect to see mortgage rates drop 3/8 of a percent or 0.375%. That would result in a rate of 5.385%.