Eugene Mortgage Loans - Rates Down
Posted by Dennis Pease on Friday, December 5th, 2008 at 9:17pm.
Well! Wild week! The horrific jobs report is all over the news so I won't spend time on it, other than to tell you that a “dismal” report was already expected, and the appropriate figures were already priced into the markets. However, since the report showed job losses way above what was expected, (533,000 vs. 325,000 anticipated) we really were looking for mortgage rates to go lower today. Not the case however. The stock market rallied this afternoon and drove rates a bit higher. Higher, but still near 40 year lows.
Rates dropped significantly the Tuesday before Thanksgiving and stayed down all through this week. We'll see what next week may bring.
You've heard by now about the plan for 4.5% 30 year mortgage rates. A little clarification is in order.
The rate drop before Thanksgiving was the result of the Federal Reserve indicating that they would buy up to $500 billion in mortgage-backed securities from Fannie, Freddie, and Ginnie. (Ginnie Mae is the cousin of Fannie and Freddie that does the bundling of Gov't loans, FHA and VA). This quick demand of mortgage-backed securities lowered interest rates. Now the Treasury Dept is considering a similar plan to purchase more of the MBS. The 4.5% rate is the anticipated result of such action. Understand that the neither the Fed nor the Treasury are setting any rates at 4.5%. That figure is merely where the rates are expected to go in the market place if this plan is implemented.
They, of course, could go that low and perhaps even lower. We've certainly seen an increase in refinance business from the rates we've had for the last week and a half, but I can't say if the purchase business has increased. You would know better than I. However, I cringe when I hear the media talking about lower rates in the future; because we all know what that will do to those fence sitters we've been trying to get off their duff.
Never-the-less keep talking to them, because the offset to much lower rates will be increases in the home purchase market, which in turn will drive prices higher. At the very least, this most likely will make sellers less willing to negotiate the kinds of deals that are out there right now.
If you have fence sitters that would buy if they could get a much lower rate right now (lower than what's shown below) then contact me, so I can show you how I can get that done. Let's get them off the fence and into escrow!!!!
Have a great weekend, and call my cell if I can be of help.
The following rates are based on 30 day locks with no discount points, as of this morning. They are not come ons, they are the rates your buyers will most likely get from a reputable lender, regardless of what is advertised. Certainly there are other specialized programs available, depending on the qualifications of the buyer.
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30 year fixed conforming = |
5.375% |
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|
15 year = |
5.000% |
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3/1 ARM = |
6.375% |
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5/1 ARM = |
6.125% |
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Jumbo fixed = |
5.875% |
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Jumbo ARM = |
5.500% |
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FHA/VA 30 year fixed = |
5.500% |
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|
Prime rate is currently = |
4.000% |
Authored by Lorin Wamsley, CMPS - Senior Mortgage Consultant, Precision Funding
Phone: 541-681-8787
Dennis Pease - Real Estate Broker invites you to see more Eugene Real Estate information and All the Area Real Estate Listings . If you are looking for a mortgage consultant, call Lorin at the number above and tell him you saw him here.
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Share3 Responses to "Eugene Mortgage Loans - Rates Down"
I hope they hit that 4.5% target! Do you know if there will be any special strings attached in order to get that low of rate?
Posted on Tuesday, February 17th, 2009 at 3:12 AM.
Guys, in paragraph #4 above Lorin says;
"Understand that the neither the Fed nor the Treasury are setting any rates at 4.5%. That figure is merely where the rates are expected to go in the market place if this plan is implemented."
@Brookhaven - No Strings
@Scott - The government taking it on the chin is you and me the taxpayers taking it on the chin. You know how it always trickles down. ;)
Posted on Tuesday, February 17th, 2009 at 3:12 AM.
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Did that 4.5% 30 year loan get approved yet? I think when it does happen the real estate market will correct itself rather quickly and get us out of this mess. Great idea by the government taking it on the chin since they are the one's that allowed the subprime stuff anyway
Posted on Tuesday, February 17th, 2009 at 3:10 AM.