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No one knows what rates will do, but waiting could mean missing the $8k tax credit -must close before Dec 01. It would take 30 years to make up .25 point to save $8k on a $200k loan, the tax credit only takes 8-12 weeks to get.
Huh...you can probably get 5% today with some lenders and ceratainly 5.125% which means it could EASILY dip back into the 4's. What an idoit this guy is for making such a bold statement. And how about the part where he mentions that basically no one pays a 1% or 2% fee (origination and/or discount) to get a lower rate. What a crock.
Well, I just got a "re-price improving" and guess what...the par rate just went to 4.875% on a 30 yr. fixed. Sr. Economist....what a joke!!
Prepare to watch these rates drop into the 4's tomorrow. 4.75 is available today with 1.75 total points, 1 point origination and .75 in buy down points. Tomorrow that will be closer to .375-.625 buy down for a 4.75 rate, or possible a 1 point buy down to lock in a 4-5-4.625 rate. 5.0 will be a zero point FHA tomorrow morning imo.
A lot of buyers on the sidelines have been waiting to see if rates would continue to drop before buying, I think they will realize now that the rate has bottomed. Homes prices have already come back from the bubble spike and are inline now with normal historic price appreciation (actually below).
I don't understand what this graph in the OP shows...are we trying to predict what home prices will do in 2008...cause the data end Jan 1st 2008.
I can tell you my predictions for what's gonna happen in the next 18 months from Jan 1st 2008 thru May 30th, 2009. (for a small service fee of course)
Looking at the other graphs on the site, it doesn't seem that there's any definitive bottom that's been established yet that would hold up to any sort of statistical scrutiny.
The rates have come down a bit today. 4.875% (I'm a small guy) is possible on a 30 year but these rates need to stay down for a while.
People will stop buying, looking whatever. We need to create a bottom now and that is not being done. Because of that, lenders are not lending where they could be. Not everyone is FHA.
When the rates went up a few weeks ago, I had a couple of realtors lose deals. People just said forget it for now.
Also, they need to promote the $8000 FTHB credit. It won't be here forever.
The rates have come down a bit today. 4.875% (I'm a small guy) is possible on a 30 year but these rates need to stay down for a while.
People will stop buying, looking whatever. We need to create a bottom now and that is not being done. Because of that, lenders are not lending where they could be. Not everyone is FHA.
When the rates went up a few weeks ago, I had a couple of realtors lose deals. People just said forget it for now.
Also, they need to promote the $8000 FTHB credit. It won't be here forever.
I respectfully disagree. I am busy with purchase business. People know about the 8000 tax credit although many do not understand it. I'm surprised agents lost deals because rates went up .5%. Most people who are willing to buy at 5 will buy at 5.5 too. I would be concerned if rates go up drastically towards the end of the year.
mortgage rate will drop below 5% sometime in November.
You are correct. The 10 year bond will begin and continue to trend lower through summer and mortgage rates will follow.
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Rates are now lower.....
