Mortgage Rates Lower As Markets Show Signs of Correction

re: Mortgage Rates Lower As Markets Show Signs of Correction

Victor Burek — Fri, 12 Jun 2009 00:06:05 GMT

Brooks, after tonight 8 to 0. Go Sox!!

re: Mortgage Rates Lower As Markets Show Signs of Correction

Brooks Landry — Thu, 11 Jun 2009 22:43:53 GMT

If MBS are performing like my Beantown Bombers then we should see rates drop alot over the next couple days. Season series Redsox 7 vs Yankees 0!

re: Mortgage Rates Lower As Markets Show Signs of Correction

Victor Burek — Thu, 11 Jun 2009 21:41:00 GMT

Bob, sorry to hear you like the Yankees. Maybe you can win tonight, LOL!! Chistina, i agree, only refi if it makes sense. you should break even on closing costs in 3 years or less before i feel it is worthwhile. Matt, historically speaking a 30 year fixed rate mortgage has averaged about 7.5%. so really anything better than that is a good rate but as Ben said, it is in the eyes of the beholder.

re: Mortgage Rates Lower As Markets Show Signs of Correction

Jenn Saunders — Thu, 11 Jun 2009 21:33:44 GMT

I work in retail as well as in the mortgage industry and I hear it all the time about gas prices costing to much. More and more people that come into my store are just window shopping cause they can't afford to buy anything. Many of the people I have talked to pay more in gas each month then they do for then their utilities. and is it just me or what but i seem to be going through gas faster than i did 2-3 years ago and i drive alot less now(and no nothing is wrong with my car).

re: Mortgage Rates Lower As Markets Show Signs of Correction

Benjamin Ketchum — Thu, 11 Jun 2009 21:30:11 GMT

Matt, thats a great question. A "good rate" is really in the eyes of the beholder. I hate the expression but in this case it works. If you've purchased a home with a rate below 6% in the past 5 years that could be considered a good rate. In today's market a good rate on a 30yr fixed might be 5.375-5.5% when a month ago that would be considered quite high. Hope this explains better.

re: Mortgage Rates Lower As Markets Show Signs of Correction

Matt H — Thu, 11 Jun 2009 21:21:04 GMT

I'm curious to know what really qualifies as a good rate. I just came into the market looking for our first home around the end of March and all the talk was about "historical lows" for mortgage rates. At the time rates were in the 4.75%-4.875% range (30 yr FRM). I know anything below five is very good, but clearly over the past few weeks the rates have gone haywire. With rates now closer to 6%, I'm wondering what really qualifies as good, and at what point are rates just back to being normal or high?

re: Mortgage Rates Lower As Markets Show Signs of Correction

Milton Wynne — Thu, 11 Jun 2009 21:16:14 GMT

Inflation? What inflation! Until jobs and houses start increasing, we have no inflation. Oil goes up, oil goes down. Yes, transportation costs go up. The only retail sales that were up this morning were gas prices (duh!) and auto sales... new Chryslers for $8K?! Wall Street bond traders are the enemy here.

re: Mortgage Rates Lower As Markets Show Signs of Correction

Jason Reed — Thu, 11 Jun 2009 21:01:26 GMT

The retail sales increase is measured as revenue. The number would be bad only if consumers stop buying gas at the higher prices, but in the short run it would almost always increase.

re: Mortgage Rates Lower As Markets Show Signs of Correction

Christina G — Thu, 11 Jun 2009 20:46:26 GMT

Victor, It is not as much greed as it is the factual numbers that put a hault to my current refinance. The rates are not much lower now than my current 30 yr fixed and because my home lost 30% equity in 1 year I only qualify for the Making Homes Affordable Program which I truly don't believe is going to help as many as hoped or expected. Fannie Mae wants to charge us a point because if we refinance our LTV would be around 105%. So since the rates are not far off from our current rate plus being punished by the point it just doesn't make sense to refinance now.

re: Mortgage Rates Lower As Markets Show Signs of Correction

Bob Deiorio — Thu, 11 Jun 2009 20:44:57 GMT

Wow Vic that Red Sox thing hurt real bad! I am still in a decent mood though.

re: Mortgage Rates Lower As Markets Show Signs of Correction

Victor Burek — Thu, 11 Jun 2009 19:24:31 GMT

Ben, i agree with the oil prices but the spin i hear is that the consumer is spending more money.

re: Mortgage Rates Lower As Markets Show Signs of Correction

Benjamin Ketchum — Thu, 11 Jun 2009 19:02:48 GMT

Victor, great blog as always. I was curious how increased oil prices could be a positive for retail sales. With my very brief economics background I would think that higher gas prices would be negative for retail sales. Greater cost of doing business means higher price in turn lower sales? Am I wrong?

re: Mortgage Rates Lower As Markets Show Signs of Correction

Troy Topham — Thu, 11 Jun 2009 18:27:53 GMT

Gooooo Sox! Rates are starting to move for the better - phew! There is light at the end of the tunnel =)

re: Mortgage Rates Lower As Markets Show Signs of Correction

Hugh Kursun — Thu, 11 Jun 2009 18:25:32 GMT

Do you think this afternoon they will reprice the rates.

re: Mortgage Rates Lower As Markets Show Signs of Correction

Victor Burek — Thu, 11 Jun 2009 18:07:41 GMT

Hey Christina, just dont get too greedy. if refi'ing at current rates make sense, move forward.