Hope you bought a house while the rates were low...Cause rates are rising on mortgages. And rates on commercial short term money are still rising if your business loan is based on Prime. (its up from 4% to 7% since July of 03) And CD rates keep going up which pinches the margins for Banks to make money. While regular savings rates stay at the measily 1% they have been at since all the other rates went so low. So if you don't have money in a house and CDs or some other high yield investment, talk to Gina, maybe she can find you something...
Another Fed Move Anticipated
Long-term rates have increased more than one-half percent since Labor Day, but the big hit could come as the Federal Reserve attempts to offset inflation pressure with a slowing economy. The 30-year mortgage rate is approaching 6.5 percent, and housing markets historically begin to cool when mortgage rates rise by 2.5 percent.
So far, mortgage rates have risen 1.25 percent since this cycle's low, but a jump to 7.75 percent may not be a sign of a slowdown due to the availability of adjustable-rate mortgages and other innovative products.
Source: Fed Poised to Put Brakes on Economy Inman News Features (11/07/05) ; Barnes, Lou
Mortgage Slowdown Predicted
The Mortgage Bankers Association forecasts an 18 percent decline in originations in 2006 from estimated volume of $2.78 trillion this year. The group expects the 30-year mortgage rate to reach 6.65 percent by fall 2006, which likely will stifle purchase and refinance activity.
Source: As Interest Rates Rise, Lenders Look at Riskier Business Tacoma News Tribune (WA) (11/03/05) ; Rozens, Aleksandrs
This has been my public service portion of my blog.
next post I'll be back to jokes and comments about pooping and boobies. For now, here is an excerpt from Jason Mulgrew's current blog post about Dating, which if I haven't convinced you to read yet, should convince you that he is funnier than me. Which makes him one of my friends even if we have never met...
Also, making love, if it has already not happened, becomes a realistic goal. And considering my personal circumstances, there is absolutely no way I should have written this. But, I am high. So let’s just move on…
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2 comments:
So what you're saying is that all the people who tried to be mortgage brokers will go back to trying to be stock brokers?
:)
I'm still looking forward to buying a place in a couple years when the 3 and 5 year arms start to float to the prime-plus-whatever. Buying sweet houses at forclosure auctions from people who did 100% financing on 3 year ARMS, then promtly took out all of any appreciation equity to spend money on above-ground pools and minimum payments on their then-zero % interest credit card balances. "Oh dang... I could afford my $900/month paymnet on my twelve billion dollar house, but now that my mortgage payment is more than my annual income, I have to sell the wife and kids..."
Pennies on the dollar.... It's going to rule. I hope. Kind of?
omg now you guys are posting interesting stuff...!
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