sgip
Well-known member
I was wrong.
Saw on our rate sheet - likely on many others today - a $417k max 3.75% 30 year fixed rate available. The "lock-able" price starts at 3.0 points for a 30 day lock (8/2/10, subject to change without notice. Some add ons for FICO, cash out, and property type may apply).
There had been the occasional off brand broker touting a 3.875% rate for the past two weeks, but at a heavy cost, usually over 4.0 points, or a 10 year ARM advertised as a 30 fixed.
So much for my theory that a sub 4.0% 30 fixed rate would be unobtainable.
On the flip side, the low rates really aren't driving new buyers into purchasing, nor sellers into moving up because prices still are under pressure. There isn't a land rush (not a refi rush for that matter) relative to what you would think there would be in a 4.25% or lower rate environment. Anyone recall going through the 2009 Refinance Boom-let? 6 months in Underwriting for a 4.x% rate. Today, it takes about 60 days to structure a refinance.
I think it's a bit scary not to have gigantic business going relative to expectations in a sub 4.5% market. It says quite a bit about the state of the economy and consumer perceptions. Sure, we're all busy, but not like in 2009. My guess is that if rates went to zero we'd still have a great number of buyers say "Meh.. I'll wait for prices to fall a bit more." A sentiment I cannot disagree with.
My .02c
Soylent Green Is People.
Saw on our rate sheet - likely on many others today - a $417k max 3.75% 30 year fixed rate available. The "lock-able" price starts at 3.0 points for a 30 day lock (8/2/10, subject to change without notice. Some add ons for FICO, cash out, and property type may apply).
There had been the occasional off brand broker touting a 3.875% rate for the past two weeks, but at a heavy cost, usually over 4.0 points, or a 10 year ARM advertised as a 30 fixed.
So much for my theory that a sub 4.0% 30 fixed rate would be unobtainable.
On the flip side, the low rates really aren't driving new buyers into purchasing, nor sellers into moving up because prices still are under pressure. There isn't a land rush (not a refi rush for that matter) relative to what you would think there would be in a 4.25% or lower rate environment. Anyone recall going through the 2009 Refinance Boom-let? 6 months in Underwriting for a 4.x% rate. Today, it takes about 60 days to structure a refinance.
I think it's a bit scary not to have gigantic business going relative to expectations in a sub 4.5% market. It says quite a bit about the state of the economy and consumer perceptions. Sure, we're all busy, but not like in 2009. My guess is that if rates went to zero we'd still have a great number of buyers say "Meh.. I'll wait for prices to fall a bit more." A sentiment I cannot disagree with.
My .02c
Soylent Green Is People.