/sarcasm
Posted on 11/16/2006 11:54:09 AM PST by Moonman62
WASHINGTON, Nov 16 (Reuters) - Average interest rates on U.S. 30-year mortgages plunged to 6.24 percent from 6.33 percent in the latest week, a low they haven't hit since registering a matching rate on March 2, finance company Freddie Mac (FRE.N: Quote, Profile, Research) said on Thursday.
Average rates on 15-year mortgages also tumbled, to 5.94 percent from 6.04 percent, and rates on one-year adjustable rate mortgages dipped to 5.53 percent from 5.55 percent.
Two key gauges of inflation, the Producer Price Index and the Consumer Price Index, dropped in October. That started a domino effect, causing bond yields to drop, which then pulled mortgage rates lower, said Freddie Mac vice president Frank Nothaft in a statement.
Nothaft said the falling rates may spur house-hunters to start buying again.
"We've probably seen the worst of the housing slump, although it may not have entirely bottomed out yet," he said. "On the other hand, lower mortgage rates should help stimulate activity in the housing market."
A year ago, 30-year mortgages averaged 6.37 percent, 15-years averaged 5.90 percent, and the one-year ARM averaged 5.20 percent.
Freddie Mac said lenders charged an average of 0.5 percent in fees and points on the 30-year and 15-year mortgages, both down from 0.6 percent a week ago. They also charged 0.5 percent on ARMs, down from the 0.8 percent they charged last week.
The "5/1" ARM, set at a fixed rate for five years and adjustable each following year, fell to an average 6.04 percent from 6.08 percent. Fees and points on the hybrid mortgage also fell to 0.5 percent from 0.7 percent.
Freddie Mac is a mortgage finance company chartered by Congress that buys mortgages from lenders and packages them into securities to sell to investors or to hold in its own portfolio.
Tumbled??? PLUNGED?????
They'll go a lot lower when thousands of houses go unsold on a glutted market. You'll get a really good deal in six months.
Maybe the fed will start moving in the right direction at the next meeting. A cut in variable interest rates would be a big boon for the economy.
Where oh where is that housing bubble we heard so much about before the election? Hummmmmmmmmmmmm.
>>A cut in variable interest rates would be a big boon for the economy.<<
Yeah, if only they had an economic vacuum in which to do it.
Meanwhile, this doesn't do much good for someone who's loan is resetting soon and their existing rate is still lower than this one. And if they have a "reverse amortization" loan? Well...
>>Where oh where is that housing bubble we heard so much about before the election?<<
It's right here: http://news.google.com/news?hl=en&ned=us&q=housing+bubble
/sarcasm
this one? the one that has already burst in Miami, Naples, West Palm Beach, Orlando, Tampa, Las Vegas, Detroit/Michigan, Phoenix, Boston, DC/VA, San Diego, OC, LA, Central Cali, Sacramento, plus the about to drop locations including Atlanta, NYC, Chicago, SF/Sillycon
http://thehousingbubbleblog.com/
not likely
Wake me up when they hit 3% for VA loans.
"year mortgages plunged to 6.24 percent from 6.33"
This is considered a "plunge"??? To me a plunge would be 4%
I forgot, add Bozeman/MT, Charlotte, Asbury Pk NJ, Arkansas, Twin Cities area, Oregon, Seattle, Denver, Greeley, oh and Texas including Austin, Dallas, San Antonio
just to name a few more housing bubble areas
Anyone who tells you there is no national housing bubble is correct. It has already popped and continues to deflate. Things will get really interesting when all of the morons who bought $500K homes on interest only ARMs find their neigbor with an identical home cant sell for $450K are also facing a 50% mortgage payment increase. Oh, did I mention that they are also competing with cutthroat home builders selling for $100K plus its a brand new home w/ incentives (to inflate the comps). 2007 will be the year of the foreclosure.
The mortgage rate "plunged" because the Dems won Congress.
Had the GOP won congress, the mortgage rates would have "drifted slightly lower".
Good night Mr. Van Winkle.
Why are you being so mean and uptight? Is the housing market not falling fast enough for you? Are lower interest rates bad news for you?
Can we quote you?
"Charlotte"
Phfffttt. Average resale home is less than $200K in Charlotte. Bubble in whose fevered imagination?
Excuse me, but...WTF???
Houses take a little longer to sell here, but they still move pretty fast. I'm sorry to hear there is really one anywhere. I hear about it on the lame stream media so I took it with a pound of salt.
I want to thank those who voted Democrat on the 7th. This wouldn't have happened otherwise.
NYMEX crude oil is 56.00, but don't be misled. That is Dec contract which is near to expiration. Jan and later run from 58 to 62.
Can you give examples of where 100K houses are selling where 500k houses were sold in the past? I seriously doubt it's the same location (with a mile or two).
OK. Go here instead: http://mathaba.net/news/?x=545976
I meant $100 less, and its happening in Phoenix, FL, and CA
>>Your evidence of the housing bubble is documented in the "SocialistAlternative.org"???????
Excuse me, but...WTF???<<
Actually, my evidence was a Google search. I don't know what you are referring to.
It certainly hasn't hit here in our section of Arizona. People are still moving here like crazy and avg price of housing is still increasing (according to local real estate appraisals) the avg price here is $279K and the more expensive homes are selling better than the under $279K houses.
There are still upticking pockets. I am actually expecting this thing to not be clear to all until next spring.
Mathaba, yeah, that's much better, what's next? Don't you have a "good" reference like Noam Chomsky? or from "Moonbats Daily".
BTW, Isn't a "RobRoy" a watered down childrens' drink?
Interest rates are still at an all time low. There is no reason for people to sit back and wait to get into real estate, it may have a slight bubble, it happened in the late 70's, early 90's and will happen again, but each time it comes back stronger and more expensive and unless you buy in the middle of a slum there is no better investment than a home; especially if you can get a loan at 6% or less.
This is not a real estate bubble. It is a credit bubble. Interest rates are not at an all time low. They are just the lowest for this year. They have been lower.
Resetting loans will become major news by early next year and BIG news by early next summer, if not sooner.
BTW, Isn't a "RobRoy" a watered down childrens' drink?
Nope: http://starbulletin.com/2006/10/17/features/memminger.html
But that is actually Rob Roy. ;)
I think you are thinking of a Roy Rogers.
No two houses are equal, but it doesn't explain a 30% drop in six months.
examples here of builders undercutting builders
http://sacrealstats.blogspot.com/2006/11/priced-to-sit-how-flippers-get-into.html
F'd sellers in Sacramento
http://sacrealstats.blogspot.com/2006/11/priced-to-sit-part-ii-dr-horton.html
Here's a bloodbath in Sacramento
http://sacrealstats.blogspot.com/2006/11/sacramento-regional-real-estate-trends_2449.html
oh, and a really telling anecdote at that site
JR said...
Max, At the Estates at Lincoln Crossing there is now have a water truck circling through the neighborhood a couple of times a week. A big 5,000 gallon truck. The driver sprays water on all the yards where the Flippers have bailed on their utility payments. It is very surrealistic. 140 homes, about 100 have been vacant for almost a year and now a huge construction style water truck drives down the street spraying the landscaping so the lawns will not die. I guess it is cheaper than paying the back utility charges.
If the Flippers won't pay their utility bills, do you think they pay their mortgages? Foreclosures may be the standard out there in 2007 & 2008.
I believe there are steeper Flipper losses per square foot in the JTS subdivisions than on any other product in the Sacramento area. I am curious if anyone sees this kind of carnage in other subdivisions? Any nominations?
Oh gee...all of ONE HUNDRED DOLLARS less than the asking price? The sky is falling and we're all doomed, DOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOMED, I tell ya! LOL
no
thats $100K less, not $100
The is no such thing as a WORLD WIDE HOUSING BUBBLE, anymore than there is a nation wide one here. Some areas/markets are falling; many are not. What's REALLY happening in some places, where prices went nuts, these past few years, is that normalcy is returning and speculators have stopped buying.
I did not say anything about a world wide bubble, but the same issues of homebuyers taking on too much home is prevalent in the UK as well.
I was just covering ALL of the bases, which pop up on these threads. Oh, and by the way, buy GOLD! LOL
>>I did not say anything about a world wide bubble, but the same issues of homebuyers taking on too much home is prevalent in the UK as well.<<
Also Austrailia. A couple of months ago I was told in one of these bubble threads that both countries had hit bottom last year are are already climbing out. Yet the stories I read say otherwise.
>>The is no such thing as a WORLD WIDE HOUSING BUBBLE, anymore than there is a nation wide one here.<<
I agree. There is a credit bubble though. This thing is gonna affect a heck of a lot more than just housing.
Yeah, existing home sales are definitely taking a hit: http://news.google.com/news?hl=en&ned=us&q=%22existing+home+sales%22
Of course, people that don't have to sell can simply pull their home off the market. But as more and more homes come up for loan resets, well, it will just be interesting to watch.
This last housing/credit bubble and it's fallout is really a new thing and the results are not really predictable. Nobody really knows what will happen or how bad it will be. That is why it is so controversial and generates the length of threads here that it does.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus
And Charlotte is probably the second most-expensive area in NC, behind Raleigh.
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