Long Term Rate Hits Four-Year Low

re: Long Term Rate Hits Four-Year Low

Charlie Beck — Mon, 15 Dec 2008 13:00:47 GMT

You get ot the point where invstors don't want to buy 30 year at 4.5% interest when they can get higher yields with other bond choices Ie: municiple, corporate. Be happy with your mid 5's since you probably won't have the loan past 5.3 years anyway, if you're like most Americans homeowners.

re: Long Term Rate Hits Four-Year Low

Jonathan Fahey — Thu, 11 Dec 2008 21:05:28 GMT

Ditto. They floated the 4.5% proposal and haven't said boo since, and it's killing me. Any chance Bernanke resurrects the idea during the meetings Monday & Tuesday? He has talked about the limits of the effectiveness of lowering the Federal Funds rate further, but also that he has other arrows in his quiver -- like the ability to lower mortgage rates.

re: Long Term Rate Hits Four-Year Low

Duane Sullivan — Thu, 11 Dec 2008 18:29:57 GMT

Count me in among those who will be closing mid January. I've got a good lock now, but look forward to relock for the better. I personally believe MBS will do well and will naturally bring fixed 30yr rates down within 30 days or so. If the Fed would focus attention on purchasing 4.0 coupons they'll really get the ball rolling. If they do not, I'm afraid our current economic situation will not only deepen, but continue for much more time then anyone would like. There's room for both home prices and rates to fall further. Anyone who thinks that rates falling further will suspend the decline in home prices hasn't really looked at the whole situation. I believe both will occur because the job loss has just begun, sadly.

re: Long Term Rate Hits Four-Year Low

Larry Aungst — Thu, 11 Dec 2008 18:09:03 GMT

I too know that we don't have crystal balls. But I'm in the same boat as Scott. Will the rates drop to the mid 4's?

re: Long Term Rate Hits Four-Year Low

Scott Krul — Thu, 11 Dec 2008 17:59:15 GMT

I know it is hard to gauge, but roughly when do you think we could see the feds make a push to get 30-year rates in the mid 4's? I am scheduled to close around the 2nd week of January.