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.
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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 ...
And you can ALWAYS find homes for sale at 70 cents on the dollar (sometimes less) if you’re creative and persistent - in ANY market.
That’s how good investors make money.
Heck if you’re in the Baltimore-Washington area I can get you a list right now. And many of them need little more than a few grand in cosmetic upgrades in decent neighborhoods.
Loan amount under 417k, verifiable income, and credit score over 640 preferred. If you have some assets (even just a 401k) you can go lower (into the upper 500s even) if your debt-to-income ratio is decent.
Jumbo loans (over 417k) are about a full percentage point higher in rate right now.
Wow, highest level in two whole months...
Congratulations! Feels great doesn’t it. Congrats on that retirement as well.
IIRC we had a Republican in office from 1 Jan 1970 thru 20 Jan 1977 ...
Thank you. My respect back to you.
I pray you find me a worthy enemy, as I find you.
Disagree on some issue syes, enemies no.
I bought my first home in 1984 via a state-run first-time-homebuyer program at "only" 9.5% and I considered myself the king of the world for getting that rate.
The house was only $60K or so, which was not orders of magnitude greater than my salary at the time, so the payments didn't cripple me. I think my car payment was 14 or 15% as well.
Every time I see people begging and crying for cuts from current rates I just shake my head.
Jimmy Carter was a republican??
Jimmah oversaw the worst of it.
Good Question, unless a lot of the loans in trouble are ‘interest only’ type ARMs, and if people are backing away from them, that is a good thing.
U.S. mortgage rates are considered to be at an almost all time low. Back in the late 70s and well into the late 80s, it was not uncommon for someone to have a double-digit interest rate on their mortgage loan. In fact, back in December of 1980, interest rates averaged 21.50 percent on mortgage loans. Someone borrowing $200,000 on a 30-year loan term during that year would have a monthly payment of $3,589. With today’s interest rates, a $3,589 payment on a 30 year loan would mean that you have a $630,000 house.
My wife and bought our first house for $170K, and put $10K down. Our rate was over 8%. We made $50K together, and we almost didn’t qualify for the loan. And that was just in ‘94. I too don’t get the whining about the rates being too high. I wouldn’t mind seeing my CD rates go up a little bit.
Wait a minute, this CANNOT be allowed to happen! I mean, if people can convert their risky, economy breaking ARMs into conventional loans - just like they were told to do 3-5 years ago when they took out their ARM - then how can we have a housing meltdown to confirm the Worst Economy Ever?
You mean when they were up to 17%. I was trying to sell my house. I wound up with a $70,000 all cash deal. Just lucky!!
“How come no one calls them “trolls?””
Like those who warned there is a housing bubble in much of the country and that would flow into the general economy but were ridiculed. Or those who warned of horrible credit conditions but were ridiculed. Bunch of doom and gloom trolls, the lot of them.