Another Dramatic Downturn in Mortgage Rates

RE:Another Dramatic Downturn in Mortgage Rates

Chris — Fri, 22 Feb 2008 13:00:00 GMT

About 8 years ago underwriting guidelines starting relaxing to the point that as long as you had good credit the ability to pay didn't matter. Then on top of that, you start lowering the credit standards on borrowers that clearly cannot afford the home. The guidelines were relaxed only to the point of what the investor would buy. While home values were increasing and the borrower got in trouble, he could just sell. Now everyone knows that is not so easy, if not impossible. But wait a minute...if I know I make $5000 a month and can only afford a $1500 house payment, I don't buy a home that will cost me $3000 a month. Like I wouldn't buy a Mercedez Benz if my range is more Ford Escort. People have to be responsible for their own decisions. I am losing money on my 401K, should I say "who can I blame" or "who can bail me out?"

RE:Another Dramatic Downturn in Mortgage Rates

Anonymous — Wed, 03 Oct 2007 11:00:00 GMT

People entered creative financing schemes like the 3-1 ARM with hopes that housing prices would continue to rise, and that they would be able to cash in, at someones else's expense, before their mortgages went up. These people were greedy and irresponsible, and don't deserve any pity. We should stop painting these foreclosure casualties as "victims." Because of them, responsible home buyers must now pay the price in this difficult lending market.

RE:Another Dramatic Downturn in Mortgage Rates

Anony — Fri, 21 Sep 2007 11:00:00 GMT

Rate, rates , rates...the problem is not with rates. There are no programs. Loan requirements are so strict that no one qualifies for the loan... Homes are appraising for less then the purchase price from a year ago and the minimum credit score requirement has gone up to over what the average american has. If you don't have 10%down or in equity, and a 680 score...forget it. IT IS ALL ABOUT THE PROGRAMS.

RE:Another Dramatic Downturn in Mortgage Rates

Chris — Thu, 20 Sep 2007 11:00:00 GMT

When will the media "Get It" that a cut in short term rates does not mean a cut in long term rates, and generally the opposite? Long term rates follow the bond market generally, when the Fed cuts short termm rates it rallies the stocks, which means bond yields (and long term rates) increase. I have had about half a dozen people call thus week asking how low mortgage rates went...and for the most part they have increased.

RE:Another Dramatic Downturn in Mortgage Rates

Mike Wolpin — Thu, 20 Sep 2007 11:00:00 GMT

This will have absolutely no affect on the real challeges for middle american consumers. A. Home prices in growth areas are grossly over inflated and equity is artificial. B. Underwriting criterion restricts qualification. C. Average people can't afford houses. D. Average people are loosing their homes in foreclosure. E. Average people whom have lost their homes due to sub prime and adjustable loans, no longer have good credit. F. Average people don't qualify to be renters.