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01-30-2009, 12:48 PM
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142 posts, read 518,486 times
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A few weeks ago or so re-fi rates were down to 4.5%? When are they going back down to that?
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01-30-2009, 12:52 PM
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Location: NC
3,247 posts, read 8,191,196 times
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Quote:
Originally Posted by shannobanano
A few weeks ago or so re-fi rates were down to 4.5%? When are they going back down to that?
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Hold on while I break out my crystal ball...nope not getting anything.
I'm just glad that I locked in 2 weeks ago at a decent refi rate of 5.375%. The rate at the time was actually 4.875%, but I'm doing just a loan modification which will cost me exactly $0 (Hence the .5 point higher rate). I'll be saving $140 a month on my mortgage with no out of pocket expenses. |
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01-30-2009, 04:41 PM
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5,281 posts, read 13,514,829 times
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Quote:
Originally Posted by Waterboy526
Hold on while I break out my crystal ball...nope not getting anything.
I'm just glad that I locked in 2 weeks ago at a decent refi rate of 5.375%. The rate at the time was actually 4.875%, but I'm doing just a loan modification which will cost me exactly $0 (Hence the .5 point higher rate). I'll be saving $140 a month on my mortgage with no out of pocket expenses.
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If you don't mind my asking, who is the lender? |
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01-30-2009, 08:21 PM
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48,504 posts, read 93,439,949 times
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If the governmant gets involved you may see refi go down in the coming year. As of now they are just starting to talk about waht to really do about the housing market.I'd wait because their is alot of pressure for congress to act on the housing crisis itself.
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01-30-2009, 08:29 PM
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Location: Wouldn't you like to know?
9,116 posts, read 17,053,210 times
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Quote:
Originally Posted by shannobanano
A few weeks ago or so re-fi rates were down to 4.5%? When are they going back down to that?
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Do you seriously think you'll get an accurate answer to that question? I mean really.....
Like the poster above said, when my crystal ball is a little clearer, I'll let you know....  |
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01-30-2009, 08:34 PM
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20,185 posts, read 22,873,380 times
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They will go down but it is between now and infinity...
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01-30-2009, 09:39 PM
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Location: Alexandria, VA
14,462 posts, read 25,498,331 times
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Quote:
Originally Posted by evilnewbie
They will go down but it is between now and infinity...
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I think you are correct (just a feeling)  |
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01-30-2009, 09:53 PM
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1,989 posts, read 4,302,580 times
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I may be speaking out my posterior, but I believe the last "sudden" drop in rates was in response to the Fed buying up $70 billion in Mortgage Backed Securities. All in all, they have budgeted $500 billion to buy up those suckers, so my gut would be that whenever they buy, the rate will go down.
The other thing I'd bet is that they pump a bunch of money into it in the spring. If the idea of lower re-fi and mortgage rates is to stabilize owners/stimulate buyers, prime home selling season would be a decent time to do it.
Last bet? Once that $500 billion runs out, everyone head for the exits. If there are no buyers for MBS, rates will go up, up, up to "traditional" levels-- 8-10% (or beyond. Eek.)
But I could be speaking out my posterior.
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01-30-2009, 11:11 PM
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28,460 posts, read 81,537,147 times
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The speculation is that the rate 'dip' was a sign of things to come -- the Fed buy-up was part of the impetus, but not the only factor, as investors clearly cannot survive on the paltry rates being offered for Treasuries...
The broader fixed income market has all kinds of problems -- corporate debt is not attractive, municipal debt is a bit of question too.
Rates are not going to up to 8% unless some things really change, no sign of that happening soon.
The Fed has a lot on its plate. They have to prioritize what to fix first, and they have some real timing issues. There is a lot bang for their buck if they open their spigots to coincide with the likely purchase of existing houses -- gotta concentrate on shrinking the "inventory levels". Sure, refinance will get to go along for the ride (don't want to create too much discontent...), but that is not the only thing the that is driving the market...
btw -- there are other threads that explain the myths of mortgage rates being set by anything other than the rates investors will pay for MBS
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01-31-2009, 12:18 PM
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1,989 posts, read 4,302,580 times
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If the rates are set by what investors will pay for MBS, and the Fed runs out of money to buy MBS and no one wants to pay the risk for them, why would you think rates wouldn't go to 8%.
What's incredible is that despite all the acrobatics the Fed is going through to buy them, rates still went up this week. When the Fed is out of the game, that upward pressure will be even greater.
[Edit: Just came across this article from Mr. Mortgage who in the past has had some very astute assessments about what was on the horizon. Some of the numbers lose me, but the ideas are there: http://mrmortgage.ml-implode.com/200...tter-buy-more/ ] |
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