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I am livid on catching up on this news today Things are happening so fast in Congress on whats in and out of the stimulus...What idiots to vote this down and I'm embarassed I voted democrat ( ok be nice here) I hold all of Congress accountable. So yea All Democrates, 5 Republicans ( Oh gosh why did they do it ) and 2 independents ( I think that is Vt and good old Lieberman) Ok so I hear their concern was that people would buy bigger mortgages...Oh give me a break...I know we all hate the banks these days..but it was their screwed up Voodoo & Unethical Underwriting that got us into this..if they did their jobs right...well things would be better....Ok so I don't get it...having a 4-4.5% mortgage rate could have helped people refinance and help them through these tough times, these rates could have helped people buy homes and get out of paying high rents (yep thats happening now Landlords & Management Co's ) raising the rents ....Oh yes they were concerned about Bank Closing Fees well put a cap on it eggheads even though we don't like it if they made some money they would shut up
Ok I hope I haven't offended anyone...I'm just mad...maybe its because I skipped lunch or that I wish I was in Florida by a pool with an umbrella drink
Mortgage interest rates are supposed to be set by the market. Why are the Republicans supporting a plan to set interest rates by legislative fiat? What happened to the Republican mantra of no government intervention in the markets?
Mortgage rates need to go higher, not lower. It is home prices that are too high.
"Home prices" are different than "Home affordability" ---- higher interest rates merely mean the vast majority of people in this country who buy homes with mortgages will pay the SAME amount each month as if the house was a higher price at a lower interest rate.
How does that help anything, exactly? Especially for lower income people?
In 1968 my parents bought a 2 family home with 1k down and through a credit union had a 4% mortgage. So What does this mean...well I'm not sure but I know my parents sacrificed to meet that mortgage they were US citizens but they were imigrants. Now the Banks are ONLY lending to folks with 20% down plus an excellent credit score , it makes me SO happy that they learned from their fraudulent ways Yea it happens they were Caught so they will abide by the real rules of actuarial banking. So it makes no difference WHAT the interest rate is the rules have gone back to 1980s BUT I think it would have been nice IF these Stupid Senators would have had a 4-4.5 % mortgage rate for one year......YEP ONE YEAR...folks could refinance... IS there ANYONE out there that this would have helped!!!!! So many folks have lost their jobs...........but the INdustries oF Health Care & Education ( mostly college jobs ) COULD have been helped by this interest rate. How does it go...People Refinance...they can replace that malfunctioning Refridgeror or Washer & Dryer..Mmmm or they buy a Home and they are frugal but they need a W&D , a fridge, maybe a dishwasher........It all helps ...Because in case you Didn't know ...GLOOM & DOOM is a SMALL part Psychological..........Hey I'm not buying anything eitherbut Guess What If my Refridge Breaks (could happen its 10 years old and groans...or My Dryer Breaks ( could happen no heat from it ) well I'm going to have to splure OMG this is LIFE
"The average U.S. rate on a 30-year fixed mortgage fell below 5 percent this week for the first time on record as a government program to buy mortgage-backed bonds lowered borrowing costs.
The fixed rate dropped to 4.96 percent from 5.01 percent a week earlier, Freddie Mac said in a report today. That’s the lowest in data that goes back to 1971, according to the McLean, Virginia-based mortgage buyer."
Yup, I would have liked 4-4.5% rates...too bad these rates would not apply to Jumbo mortgages. Anyway the point is mute. I wish it was just manadatory that the buyers put 20% down. If you cant put that down...then you are not ready for home ownership. what is so bad about renting, until you can save enough for a down payment?
Yup, I would have liked 4-4.5% rates...too bad these rates would not apply to Jumbo mortgages. Anyway the point is mute. I wish it was just manadatory that the buyers put 20% down. If you cant put that down...then you are not ready for home ownership. what is so bad about renting, until you can save enough for a down payment?
Agreed, the country having targets and objectives concerned increased home ownership is misplaced. Rather, home ownership should be a by product of your successful financial management, not a national objective.
This article from 2000 shows how the problem evolved:
HUD said it will chase the objective by, in part, increasing the availability and affordability of FHA mortgages and be placing even greater affordable housing requirements on Fannie Mae and Freddie Mac, the two secondary mortgage market companies which channel most of the money for home loans to local lenders.
"Home prices" are different than "Home affordability" ---- higher interest rates merely mean the vast majority of people in this country who buy homes with mortgages will pay the SAME amount each month as if the house was a higher price at a lower interest rate.
How does that help anything, exactly? Especially for lower income people?
How does earning 50 basis points on their savings help anyone either? Interest rates affect borrowers and lenders alike. For years, US securities were deemed the world's safest investment, providing safety and an acceptable return. Have you priced T-bills lately? 0.50%!! How about your savings account or CD? If you can get 2%, it is a good return these days.
If you you are a lender, how much are you willing to lend when the reward is zero and you still have the risk? The historical risk-free rate for the last 50 years has been ~6.7%. Since 1928 is has been 5.3%. It is currently 1/10 of that.
The housing crisis is the result of the govt. agreeing to underwrite risky loans. Many were issued at artificially low rates. When the rates reset, many found they could not afford their homes. If one cannot afford a home at the average historical rate, then he should not buy it.
Rates must rise for the economy to grow. When they do rise, house prices will fall. More will lose their homes. There is no alternative.
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Things are happening so fast in Congress on whats in and out of the stimulus...What idiots to vote this down and I'm embarassed I voted democrat ( ok be nice here
) I hold all of Congress accountable. So yea All Democrates, 5 Republicans ( Oh gosh why did they do it 
) and 2 independents ( I think that is Vt and good old Lieberman) Ok so I hear their concern was that people would buy bigger mortgages...Oh give me a break...I know we all hate the banks these days..but it was their screwed up Voodoo & Unethical Underwriting that got us into this..if they did their jobs right...well things would be better....Ok so I don't get it...having a 4-4.5% mortgage rate could have helped people refinance and help them through these tough times, 
these rates could have helped people buy homes and get out of paying high rents (yep thats happening now Landlords & Management Co's ) raising the rents 
....Oh yes they were concerned about Bank Closing Fees well put a cap on it eggheads 
even though we don't like it if they made some money they would shut up
or that I wish I was in Florida by a pool with an umbrella drink
Now the Banks are ONLY lending to folks with 20% down plus an excellent credit score , it makes me SO happy that they learned from their fraudulent ways
or they buy a Home and they are frugal but they need a W&D , a fridge, maybe a dishwasher........It all helps ...Because in case you Didn't know ...GLOOM & DOOM is a SMALL part Psychological..........Hey I'm not buying anything either
...or My Dryer Breaks ( could happen no heat from it ) well I'm going to have to splure OMG
