I thought the downgrade would increase rates.
I think now is the time to refinance if you are going to do it, before rates go up...
I think now is the time to refinance if you are going to do it, before rates go up...
OT: Mortgage Rates went down today...
- Thread starter fishwater99
- Start date
The reason that rates will go up is because many funds will be forced to sell their treasuries because of the portfolio criteria. Therefore you will see an increase of these bonds on the market with fewer buyers. The rates will have to go up to bring more buyers to the market. These funds will have a little bit oftime to adjust their holdings.
The U.S. is still the best house in the worst neighborhood and I don't see that changing. That said, given that ~48% of US debt is owned outside the US, rates will begin to rise when foreign investors demand a higher rate for lending us money, not due solely to the S&P downgrade.
Fannie and Freddie downgraded
Until we let Fannie and Freddie fail or get all those bad loans off the books, our economy will continue to struggle.
Until we let Fannie and Freddie fail or get all those bad loans off the books, our economy will continue to struggle.
...those bad loans will be off the books in right about 25 years!
or we could, you know, give some principle relief. but it seems most would rather the economy suck for 30 years than give a handout to those who lost money buying at the peak of the bubble.
it's nothing new: 'cut off your nose to spite your face' is an old saying.
or we could, you know, give some principle relief. but it seems most would rather the economy suck for 30 years than give a handout to those who lost money buying at the peak of the bubble.
it's nothing new: 'cut off your nose to spite your face' is an old saying.
30 year rate was 4.375% today, and the 15 year was 3.75%. No points or origination. As good as they have ever been.
10% or so of those, have refinanced
10% or so have sold
30% or have been foreclosed on, Or will be soon.... Might be very low.
30% or so will sell or refinance within 5 years
20% or sowill pay to term
So a weighted average of term on the 2006 portfolio is ...what 12 years or so.
Things flush out much quicker than one might think. Still a long time, we are in deep ****.
10% or so have sold
30% or have been foreclosed on, Or will be soon.... Might be very low.
30% or so will sell or refinance within 5 years
20% or sowill pay to term
So a weighted average of term on the 2006 portfolio is ...what 12 years or so.
Things flush out much quicker than one might think. Still a long time, we are in deep ****.
movement with mortgage backed securities today as one would have thought considering the day the DOW had. The 10 yr yield obviously had some movement. That said, what gains we saw today were recoving from losses we had on Friday after what was a big big day Thursday. We actually were offering 3.375 on a 15 year Thursday and that's more like 3.5 today with no points/origination unless the loan size is large.. 30 year at 4.25 no points with the right circumstances. FHA at 4-4.25 depending on loan size. And considering that as I type this the Asian Market is getting hammered overnight and the 10 year is down to 2.29 I don't see much changing in the morning.
But everyone is right....eventually this will all go up. Eventually.
But everyone is right....eventually this will all go up. Eventually.
Should I Shop around or wait a few days or weeks... Looks like the 10 year T-bill is still a good investment vs the market.
Even if they dropped a full percent, you'd only save about $55 per monthafter tax on a $100K mortgage. And there's no way they're droppinganywhere near that much. Take it and know you've got a great rate no matter what interest rates do in the future.
The time frame was a bigger issue for us and a slight rate reduction will not do all that much at this point. Even a half percent drop would only make our monthly payment drop by about $30.
I check on some of my individual stocks yesterday and was not happy. Thinking about buying a few today...