Skip to comments.Mortgage Applications Fall as Rates Soar (ARMs Adjusting UP)
Posted on 11/28/2007 6:50:02 AM PST by Hydroshock
Applications for U.S. home mortgages fell last week as rates on some adjustable loans soared to their highest levels in more than two months, according to data from an industry group Wednesday.
RELATED LINKS Comments Lift Sentiment Stocks Open Higher Durable Goods Orders Fall for Third Straight Month Mortgage Applications Fall as Rates Soar
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity declined 4.3 percent to 652.5 in the week ended Nov. 23.
Rates on one-year adjustable-rate mortgages that include many jumbo loans climbed 26 basis points to 6.24 percent, the highest since the height of the credit crunch in mid-September, the MBA data shows.
But fixed 30-year mortgage rates declined 9 basis points to an average of 6.09 percent last week, the lowest level since the week ended March 23.
The MBA's seasonally adjusted index of refinancing applications fell 15.3 percent to 1,862.9 last week. The index measuring loan requests for home purchases rose 6.1 percent to 450.1 in the week, the MBA said.
(Excerpt) Read more at cnbc.com ...
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30-year mortgage rates are based on the 10-year bond (not the 30-year bond because the average mortgage is closer to ten years). The 10-year bond yield hit 3.84% the other day and today is right around 4%. These are very nearly at the lowest rates in the past five years at least (except for an impossible-to-predict spike down that lasted about three months in 2003.) If you want a mortgage, go for the 30-year one.
This is doom'n'gloom/we need a democratic president stuff?/sar
6.24% is soaring? Does anyone remember the 70’s?
Lots of doom and gloom threads on FR as well.
Media Hype often translates to Freeper Hype.
Highest in two months??!! Holy Toledo!!
“6.24% is soaring? Does anyone remember the 70s?”
A Democrat was president then, silly. That makes it okay.
It’s soaring compared to the 4% rate they could only barely afford when they did the loan.
Lot’s of Shorts, Goldbugs and Oil Barons.
It seems like we had double-digit interest rates for quite awhile, IIRC. I was not paying a mortgage then, but payments must have been awful.
That's what I am wondering as well. Rates are low, prices are down, it's a perfect buyers market unless you are waiting for a big fallout to bargain hunt. We are moving up a little, and our house is on the market. No one is looking right now, the market is flat. The only reason for it is these stupid doom and gloom stories. If you have decent credit and can afford the payments, there is no reason to sit out right now.
the conditions change daily and they have so overreacted to the hype that virtually all but A paper full doc loans have gone fallow.
The fine print:
The “fixed 30, prime, conforming rate...”
If you ain’t prime, or your note isn’t conforming, your rate isn’t going to be quite so attractive.
How come no one calls them "trolls?"
I just closed on my 1st home last Friday. It took many years of saving, scrimping, and sacrificing. I resisted the pressure to buy during the bubble. My wife and I bought a home that we liked, and one that we can afford. We look at our house as a place to live out our days, not a piggy-bank.
Our criteria for a house was to buy something that my monthly payments and my utility costs would be covered by my military pension check, and that we would only finance with a 30 year fixed rate mortgage. We were patient, stuck to our guns, and now we have the “American Dream”.
You draw the most flak when you are on target.
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