Refi Wave on the Way?
While mortgage rates haven’t kept pace with the plummeting Fed Funds Rate, the 30-Year Fixed rate has come down almost 75 basis points in recent weeks to a national average of around 5.7% yesterday. The recent trend got a boost last week from comments by Ben Bernanke that the Fed, which doesn’t have much fire…
While mortgage rates haven’t kept pace with the plummeting Fed Funds Rate, the 30-Year Fixed rate has come down almost 75 basis points in recent weeks to a national average of around 5.7% yesterday. The recent trend got a boost last week from comments by Ben Bernanke that the Fed, which doesn’t have much fire power left with its signature rate (how much lower than 1% can you go) may start trying to impact the long end of the curve by purchasing U.S. Treasurys. According to Bloomberg, refinancing can already make sense for home owners with existing mortgages of 5.5% or higher. Presumably a wave of refinancings would help both the real estate market and the overall economy, generating fees for banks a lowering carrying costs for owners. Have any readers been looking into refinancing? Excuse us while we go have a look at the fine print on our mortgage now.
Long Bond Returns Most Since 1995 [Bloomberg]
30-year Fixed Mortgage Rates Down Tuesday [Bankrate]
Graph from Seeking Alpha
“The reason of this Bubble into US Tresuies is because no one is not loaning Asshats any money”
No one is not loaning money? So everyone is loaning money?
Tresuies? Is that French for “very Swiss?
Yes, of course slopefarm. The comma is missing. But what if I was making reference to Orwell’s “Animal Farm” but in this case Asshats played the characters on the “Slopefarm.”
Maybe too deep for this early in the morning but we’re playing Christmas music here at the MAB hedge fund and decorating the office. Can’t wait for the What’s response to that!!!!
My rate is 6.26% and my LTV when I bought it was 45% so I could easily refi but at 5.5% it still doesn’t have a decent payback. I never refinanced in NYC. Is there away around paying the mortgage tax a second time??? Adam Dahill???
“I’ve got the equity and I’m doing a refi. I guess that makes me an asshat.”
Hold on! You need to get some comps Homeboy! Mayybe last month somewhere in your hood someone punched out at a suckass price and guess what? that is your “new” value and no Appriser or Underwriter will go over that amount. In fact you better hope your zip code is in a “Declining Area”, they will cut 5% off the apprised price.
Yep most of you morons are toasty and crispy, Buh Buy…
The What
Someday this war is gonna end…
“Hmm, this story is now 10 minutes old and we still have yet to see a cut and pasted, vitriolic, poorly written post regarding “November Layoffs Hit Highest Level in 7 Years” or BofA announcing up to 30,000 layoffs? I wonder if our friend is ok.”
Naw Numbnuts I don’t have to. The implosion is well underway..
Now if you look it this way most of the Asshats cannot Refi because they are SSSOOOOO underwater they should just “walk away”.
The reason of this Bubble into US Tresuies is because no one is not loaning Asshats any money (House, Cars, Credit Card and Letters of credit) and everyone is afraid they will lose their money. How can you explain just getting 2.73% for 10 years? It’s fear and nothing else.
When the Obama Administration takes over they will have some hard choices to make. Will they continue to bailout everyone and have the deficit go parabolic or will they put down the crack pipe and get things under control. If they don’t the implosion in the Bond Market will be a sight to behold…
The What (But… But.. The Fed lowered rates right??)
Someday this war is gonna end…
Er, Dave, you need a comma in there at 10:03.
The larger point is that I disagree with commonsense above — I think you would have had to have bought pretty recently in Brooklyn and with 20% down to have a potential LTV problem for refi, and only in some areas. In my little wood frame and vinyl neck of the woods, for example, there are some pretty astonishing comps.
Asshats rule slopefarm.
I’ve got the equity and I’m doing a refi. I guess that makes me an asshat.
It usually isn’t worth it to me to refi. Currently have a 6.25 30 year fixed. I would estimate that I have 70-80 percent in equity (for the moment) so that isn’t an issue. I’ve been in my place long enough to have been underwater with 25% down in the early nineties. Because of the additional amount of recording taxes that will be added to the principle rates have to fall at least a full percentage point for me save anything and the savings is negligible for me.
That would make more sense, Dave, but the Bloomberg article said 5.5%. Guess they could have made a mistake.