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30-year mortgage rates just barely above 4%
Marketwatch ^ | 9.29.11 | Amy Hoak

Posted on 09/29/2011 8:29:10 AM PDT by Free Vulcan

Average rates on fixed-rate mortgages hit record lows this week, with the 30-year fixed-rate mortgage averaging 4.01%, according to Freddie Mac’s weekly survey of conforming mortgage rates.

“Fixed mortgage rates fell to all-time record lows this week following the Federal Reserve’s announcement of its Maturity Extension Program and additional purchases of mortgage-backed securities,” said Frank Nothaft, vice president and chief economist of Freddie Mac, in a statement.

(Excerpt) Read more at marketwatch.com ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: fed; interest; mortgage; rates
Looks like the Fed is papering over the mortgage problem with some stealth quantitative easement by buying mortgage backed securities.
1 posted on 09/29/2011 8:29:14 AM PDT by Free Vulcan
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To: Free Vulcan

30-year fixed rate mortgage 4%?

This is a pretty incredible deal for someone who was going to buy anyway am I right?

Surely rates are going to be much higher and not much lower in that time period.

What do others think?


2 posted on 09/29/2011 8:32:49 AM PDT by Christian Engineer Mass (25ish Cambridge MA grad student. Many conservative Christians my age out there? __ Click my name)
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To: Christian Engineer Mass

When 15 year mortgages hit 3 percent, we’re in.


3 posted on 09/29/2011 8:35:30 AM PDT by Eric in the Ozarks
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To: Eric in the Ozarks

Are you remortgaging, or buying a new place?


4 posted on 09/29/2011 8:38:11 AM PDT by Christian Engineer Mass (25ish Cambridge MA grad student. Many conservative Christians my age out there? __ Click my name)
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To: Christian Engineer Mass

Yes, I agree, a great deal!


5 posted on 09/29/2011 8:39:34 AM PDT by NEMDF
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To: Eric in the Ozarks
Nearly 3.3% now.

http://www.bankrate.com/brm/publ/30yrmolg.asp



Where is a longer term chart?
6 posted on 09/29/2011 8:41:39 AM PDT by Christian Engineer Mass (25ish Cambridge MA grad student. Many conservative Christians my age out there? __ Click my name)
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To: Free Vulcan

I just refied for 3.5% for 10 years. : )


7 posted on 09/29/2011 8:46:32 AM PDT by US_MilitaryRules (Uhhhh!)
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To: Christian Engineer Mass

I just locked a 30 year fixed rate mortgage at 3.91% A freaking 30 year fixed rate at 3.91%! The rates could potentially go down a little more, but I can’t imagine a 30 year rate much lower than that. My current rate was 5.0%.


8 posted on 09/29/2011 8:49:34 AM PDT by RayBob (If guns kill people, can I blame misspelled words on my keyboard?)
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To: Free Vulcan

Yes. Marx, Stalin, and Mao all moved private property into complete govt. control at gunpoint. The creation of legally non-marketable property (call Mortgage “Backed” Securities “non-property”, with no paper trail of original notes and titles extant) means the former private properties must remain in complete govt control, as with the application of a one-way fish basket trap, for the continual non-exposure of the derivative risks to our biggest banks, insolvent if the values of the properties are exposed at true private market value (of course, with no papers, they have little legal value, and the courts are confirming that foreclosures of non-property with no papers are not legitimate for claims. It is the very creation of mortgage backed securities by banks with the destruction of the legal records that has served the govts. purpose of requiring that the properties remain nationalized in govt hands to avoid exposure of the bank fraud and force the taxpayer to pay for all the fraud as well as the destruction of private property, a non Constitutional act in itself.


9 posted on 09/29/2011 8:57:14 AM PDT by givemELL (Does Taiwan eet the Criteria to Qualify as an "Overseas Territory of the United States"? by Richar)
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To: Christian Engineer Mass

Existing 30 year note.


10 posted on 09/29/2011 9:05:26 AM PDT by Eric in the Ozarks
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To: Free Vulcan

Got a 3.25% 15 year on a 6-year old house (foreclosure) that was less that 100K.


11 posted on 09/29/2011 9:12:53 AM PDT by struggle
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To: Free Vulcan
Wow cool, great time refinance.... Oh crap my house is worth $100k less than what I owe.....
12 posted on 09/29/2011 9:39:39 AM PDT by Moleman
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To: Free Vulcan
I saw an ad for (I think) Quicken Mortgage, with 30-year going for 3.75% and 15-year going for 2.88%.

Not only are those amazingly low, but the 15-year rate was so low that for the same amount borrowed, it would have lower payments than the 30-year mortgage (in addition to being paid off twice as fast).

I would dearly love to take advantage of this, but I'm currently unemployed, and I would have to come up with $50,000+ to be able to get an 20/80 mortgage.

13 posted on 09/29/2011 9:49:34 AM PDT by Johnny B.
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To: Free Vulcan
Free money is free money so I encourage all those who can to take advantage of it. However it is incorrect that we, collectively, will never pay for this free lunch. As many of these loans are bought by Freddie we all own them and it is an extremely poor investment (low rates, poor economy, poor prospects for house price rises). The low rates have caused an artificial bubble in longer term treasuries which cause a disaster when it pops. The popping can only be alleviated with pure inflation. Each new month of 4% mortgages or whatever just digs that hole deeper.

The correct policy at this point is to let long term rates float to where they should be (10-15% depending on various risks) and let the economy readjust to that new reality.

14 posted on 09/29/2011 9:49:49 AM PDT by palmer (Before reading this post, please send me $2.50)
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To: Eric in the Ozarks

Last year we finished the basement with a home equity line of credit, and then rolled it into a refi of the mortgage. 10 years @ 3.75%. When the home is paid off, I’m ready for the glide path to retirement.


15 posted on 09/29/2011 10:25:46 AM PDT by henkster (Socialists and liberals all want jobs; they just don't want to work.)
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To: Free Vulcan

I think the Fed’s main goal right now is to move away from short term instruments to longer term instruments. They are attempting to avoid Weimar-style turbo-inflaton, which was caused by the Kaiser’s government financing the war by selling debt to themselves with short term instruments. When the massive amount of war debt came due in the 1920s, there were no takers. So Weimar Germany had to print money to paper it over.

This is just a way to try to avoid that by re-arranging deck chairs.


16 posted on 09/29/2011 11:29:07 AM PDT by henkster (Socialists and liberals all want jobs; they just don't want to work.)
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To: Christian Engineer Mass
Considering that the lenders are obtaining money at zero percent or negative interest, 4% is kinda pricey.

For comparative purposes, consider that in the 1960s the discount rate was 4+% and the mortgage rate was 5.5-5.75%.

In terms of the big picture (what to do) - I have no idea, but I'm leaning to borrowing a lot and locking in a long rate of 4% being smart. This is a pro-inflation view (meaning, I think inflation is likely), that might be wrong, so YMMV. In a deflationary crisis, a big mortgage at 4% when incomes are falling consistently could be a terrible move - IF you think they really will make you pay.

17 posted on 09/29/2011 11:36:10 AM PDT by Jim Noble (To live peacefully with credit-based consumption and fiat money, men would have to be angels.)
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To: Jim Noble

inflation has generally trended with interest rates, but it doesn’t have to be so, especially if printing money is the cause of the inflation,

I think.


18 posted on 09/29/2011 12:07:06 PM PDT by Christian Engineer Mass (25ish Cambridge MA grad student. Many conservative Christians my age out there? __ Click my name)
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To: Johnny B.

http://www.quickenloans.com/home-loans/15-year-fixed
seems quicken 15 yr is 3.375. Do you know where you saw it?


19 posted on 09/29/2011 12:12:29 PM PDT by Christian Engineer Mass (25ish Cambridge MA grad student. Many conservative Christians my age out there? __ Click my name)
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To: Christian Engineer Mass

Maybe it was Lending Tree. As I type this, they are advertising a 15-year for 2.875%.


20 posted on 09/29/2011 12:41:02 PM PDT by Johnny B.
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To: Johnny B.; Eric in the Ozarks

OK so http://www.lendingtree.com 2.875 on 15yr. But they say “as low as” so you won’t actually get that.

How do you find where’s the best?

Google search is useless for any searches like that because all of the results are spam.


21 posted on 09/29/2011 12:48:01 PM PDT by Christian Engineer Mass (25ish Cambridge MA grad student. Many conservative Christians my age out there? __ Click my name)
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