Mortgage Rate Drop

M

macinthebox_IHB

New member
Lending Tree called me, left a message saying that mortgage rate dropped quite a bit today. I did a quick search online, and it looks like we can get 4.625% 30-year fixed with 1 point fee now. 4.25% on a 15-year loan



Can people in the mortgage industry confirm this? Is the mortgage rate headed even lower? Help is much appreciated.
 
Yes, looks like rates have dropped significantly. IndyMac is pricing 4.875 with .75 points on a 30-year.



Damn government is trying to suck me into buying a home. I think Obama knows my lease is ending soon...
 
Lenders now can get coupons of 3.5% which would translate into a 3.75% to 4.375% rate to the borrower. You will see these kinds of rates soon.
 
[quote author="Mcdonna1980" date=1237455737]Lenders now can get coupons of 3.5% which would translate into a 3.75% to 4.375% rate to the borrower. You will see these kinds of rates soon.</blockquote>


What do you mean coupons of 3.5%? How soon are we talking about here? Are the rates you are talking about for 30-year fixed?
 
Damn FED buying $300 billion worth of 10-year notes to lower mortgage interest rates really pisses me off because I am confused at its impact.





I am confused on the effect that Hyper-Inflation could have on Housing prices with so much money printing and money being so cheap to borrow.





Eventually they will have to jack up interest rates to counteract inflation, then home "prices" will have to fall again so people can afford to pay the interest.





All this medaling with the markets is really screwing up the correction.
 
[quote author="MacInThebox" date=1237456563][quote author="Mcdonna1980" date=1237455737]Lenders now can get coupons of 3.5% which would translate into a 3.75% to 4.375% rate to the borrower. You will see these kinds of rates soon.</blockquote>


What do you mean coupons of 3.5%? How soon are we talking about here? Are the rates you are talking about for 30-year fixed?</blockquote>


<a href="http://www.investopedia.com/terms/c/current_coupon.asp">Definition of coupon here</a>



Yes they would be for the 30 fixed



Maybe as soon as next week.



The info I'm giving you is solid as it comes from someone that does pricing on the trading desk of a mortgage company. You can also following mortgage pricing on Bloomberg.
 
Looks like the FED is fully intent on getting the 30-year mortgage rate down to 4% or lower. I remember telling folks in another thread that we'll see a 4% rate before we see an 8% rate. And yes, all this manipulating with rates will have its consequences later on down the line.
 
[quote author="usctrojanman29" date=1237463323]Looks like the FED is fully intent on getting the 30-year mortgage rate down to 4% or lower. I remember telling folks in another thread that we'll see a 4% rate before we see an 8% rate. And yes, all this manipulating with rates will have its consequences later on down the line.</blockquote>


If rates go that low, I'll buy a house sooner rather than later. On our target house, 4% today will likely be a push on a monthly payment basis with a 20% price drop a year or two from now with rates back up to 6%...



Heck, with a mortgage rate of 4%, the spend owning my current home vs. renting it would probably be $1K less per month.
 
[quote author="ipoplaya" date=1237469796][quote author="usctrojanman29" date=1237463323]Looks like the FED is fully intent on getting the 30-year mortgage rate down to 4% or lower. I remember telling folks in another thread that we'll see a 4% rate before we see an 8% rate. And yes, all this manipulating with rates will have its consequences later on down the line.</blockquote>


If rates go that low, I'll buy a house sooner rather than later. On our target house, 4% today will likely be a push on a monthly payment basis with a 20% price drop a year or two from now with rates back up to 6%...



Heck, with a mortgage rate of 4%, the spend owning my current home vs. renting it would probably be $1K less per month.</blockquote>
Don't be too impatient though, those low rates are gonna be around for a while (at least a few years). We may be in a ultra low interest rate environment just like Japan. If you do buy sooner than later just make sure that is the place where you would live for the longer term (10-15+ years) because as rates will begin to rise your equity will keep evaporating.
 
<a href="http://www.mortgagenewsdaily.com/mortgage_rates/blog/">Mortgage Blog that industry insiders follow</a>



For anyone who wants to learn about the trading side of mortgages go to this blog.
 
[quote author="Roo" date=1237510965]I assume this is only for conforming loans?



I want 4% for jumbo!</blockquote>
Keep dreaming (insert a No_Vas picture). haha
 
Regarding superjumbo loans, I spoke with my mortgage broker and she indicated that there will be some federal goverment manipulation of the superjumbo market on the way in the next 2-4 weeks. Has anyone heard anything regarding Fannie/Freddie buying superjumbo?
 
[quote author="Maltese" date=1237546058]Regarding superjumbo loans, I spoke with my mortgage broker and she indicated that there will be some federal goverment manipulation of the superjumbo market on the way in the next 2-4 weeks. Has anyone heard anything regarding Fannie/Freddie buying superjumbo?</blockquote>
I have no doubt that the gov't may stick their finger in the jumbo/super jumbo mortgage market and manipulate rates there, but their main focus will be on getting conforming rates to 4% or lower.



The question in my mind is where would interest rates be on conforming loans if the Fannie/Fredie Mac imploded? 6%? 8%? higher?
 
Interesting, AIM loans is quoting loans above 417k with less points.

Tues, April 7, 2009

30-Year Fixed to $417,000

Rate Points APR

4.375 1.799 4.571

4.625 0.925 4.747

4.875 0.000 4.917



30-Year Fixed to $625,500

Rate Points APR

4.375 1.708 4.549

4.625 0.925 4.733

5.125 0.000 5.153
 
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