Mortgage Rates on the Rise
Mortgage rates are rising, according to the Times, in the wake of the troubles surrounding Fannie Mae and Freddie Mac. While rates continue to be low by historical standards, they’re high compared to the levels they’ve been at in the past several years: The average yesterday was 6.71 percent for 30-year, fixed-rate mortgages, up from…
Mortgage rates are rising, according to the Times, in the wake of the troubles surrounding Fannie Mae and Freddie Mac. While rates continue to be low by historical standards, they’re high compared to the levels they’ve been at in the past several years: The average yesterday was 6.71 percent for 30-year, fixed-rate mortgages, up from 6.44 percent on Friday, and 7.8 percent for jumbo loans. Rising rates primarily threaten to affect borrowers who have had loans with an interest-only teaser period, which could deepen the national housing morass. When we get to rate levels like this, the market just shuts down, said a mortgage broker based in Colorado. Some analysts argue that the rising rates are a temporary blip. Do any readers have first-hand experiences to report from the last few days?
Woes Afflicting Mortgage Giants Raise Loan Rates [NY Times]
Photo by woodleywonderworks
“Are you addding to your shorts or capitulationg and going to change your login to dow15000sp1500”
Neither. An outsider shorting a rigged market is a dangerous game. I’ll short NYC housing and change my login to bedstuybrownstone350K. Good luck and good night.
Call Citibank and ask what their rate would be on a jumbo $2mm property with 25% down. It will be way higher than 6.71% (even with a FICO of 700+). The “couple points up” comment is too funny. I’m used to worrying about bps (200 bps = 2 points) and that is a huge movement.
My point is the rate quoted in the paper is an average based on “published” rates. In reality- rates are actually much higher than the average and it is a problem- even if you make $400K a year. Banks just down want to lend anymore.
dow8000sp800…that doesn’t mean they are selling them. In fact the issue that was sold on Monday was 80% bought by foreigners, mostly governments.
Are you addding to your shorts or capitulationg and going to change your login to dow15000sp1500
“What really happened with Fannie & freddie was that China, Japan and other holders of these securities called in their markers.”
Yup. Been anticipating this for 2-3 years. It was just a matter of when.
We can’t touch social security because the AARP – American Association of Retired People is THE most effective lobbying group in the United States. It’s ridiculous that the program is not means tested – that would be the way to cut it. Why is the government sending retired millionares a check every month? Ross Perot and Warren Buffet receive checks every month. Guess which age cohort is the most wealthy in the US – that’s right over 65. Guess which age group is the poorest – below 18. Which group do you think we should be investing in? The country is so screwed in so many ways it can make your head spin.
Fsrq- Wiki has an exhaustive discussion of soc sec that you might find interesting, including how it fits into the national budget. http://en.wikipedia.org/wiki/Social_Security_debate_%28United_States%29
I don’t profess to understand all of it but take a look at how it is set up and the projections, and interpretations.
Brooklynnative – Not to get sidetracked here – but why cant we cut Social Security – what sense does it make now that life expectancy is approaching 80 to offer retirement benefits (far in excess of what was payed-in btw) to people who are 62 (or even 65) –
Of course I know you are right that it can’t be touch – in a political sense.
BTW 7andfive This bailout is about saving their Buddies, Homeboys and Cronies! They could care less about the Asshat homedebter!
The What
Someday this war is gonna end….
” Just the opposite they’re buying more! The US has guaranteed the investments on these bonds, so no need to call the money in just yet. China could wait and actually make a run on these entities. Not in the traditional sense of when a run is made on a bank”
Ding Ding Ding Ding!!!!! Yes we have a winner! Thank GOD Yes!!!!!! They are setting the Jux on US Assets and when the implosion happens they will get American Assets pennies on the dollar!!!!!!
Thank you 7andfive!
The What
Someday this war is gonna end….