Rates are down this week by .250 But for how Long?

sd · Joined: 07 Mar 2006 Posts: 19

With a little good news this week showing (at least for now) low Inflation. We have had a small rally. It does appear the Feds are going to raise rates on the 28th of this month but for now borrowers can enjoy these low rates. We are seeing a big reduction in Home prices here in Florida and a change in investor preception. Maybe at these prices its not such a great investment. The condo market is getting hit also. Some builders have dropped their new home spec prices by $50,000 on a $300,000 house. Across the country it appears the same on a smaller scale. How about in your area? This is a good time for borrowers with low rates and price reductions. It will be interesting to see how the 100 -103 LTV loans look in the future with the lowering of home values. Will they be 125's? What if one of the borrower loses their job? The servicers will be very unhappy about that. Expect to see serious changes with Freddie and Fannie products in the future. Borrowers are in the drivers seat for now. Good info on the credit score pulls. You do not need to apply at every broker. Do your homework first. Rates change fast at times and you need to always be alert to that fact. Today is a perfect example, rates dropped a full .125 in one day. You can not go by a quote from the broker last week.

laurenk · Joined: 10 Apr 2006 Posts: 4

interesting post

chow · Posted: Tue Apr 11, 2006 1:47 am Post subject:

After the bath the 125% market had-I don't see that a happenin' thing in the close future. Can we go for 150%?

Let me see....The PMI companies look at 103-107% as HIGH risk today...
Values going flat on west coast.

6 months ago they were warning the UW's to get tight.