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Mortgage Applications Fall as Rates Soar (ARMs Adjusting UP)
http://www.cnbc.com/id/22004610 ^ | 11-28-07

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 ...


TOPICS: Business/Economy; Miscellaneous; News/Current Events
KEYWORDS: applesonly5cents; breadlines; depression; despair; doom; dustbowl; grapesofwrath; soupkitchens; vulturegram
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To: cspackler

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.


21 posted on 11/28/2007 7:16:36 AM PST by RockinRight (Just because you're pro-life and talk about God a lot doesn't mean you're a conservative.)
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To: NVDave

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.


22 posted on 11/28/2007 7:18:18 AM PST by RockinRight (Just because you're pro-life and talk about God a lot doesn't mean you're a conservative.)
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To: Hydroshock
as rates on some adjustable loans soared to their highest levels in more than two months

Wow, highest level in two whole months...

23 posted on 11/28/2007 7:20:31 AM PST by thackney (life is fragile, handle with prayer)
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To: sean327

Congratulations! Feels great doesn’t it. Congrats on that retirement as well.


24 posted on 11/28/2007 7:22:01 AM PST by napscoordinator
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Comment #25 Removed by Moderator

To: rightinthemiddle

IIRC we had a Republican in office from 1 Jan 1970 thru 20 Jan 1977 ...


26 posted on 11/28/2007 7:28:01 AM PST by Seajay (Ordem e Progresso)
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To: Hydroshock
You draw the most flak when you are on target.

Thank you. My respect back to you.

I pray you find me a worthy enemy, as I find you.

27 posted on 11/28/2007 7:28:57 AM PST by BlabItGrabIt (Anyone opposing rate cuts is in Hillery's or Rudy's camp)
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To: BlabItGrabIt

Disagree on some issue syes, enemies no.


28 posted on 11/28/2007 7:32:12 AM PST by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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To: Sender
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.

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.

29 posted on 11/28/2007 7:33:06 AM PST by jiggyboy (Ten per cent of poll respondents are either lying or insane)
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To: sean327

Congratulations!


30 posted on 11/28/2007 7:33:33 AM PST by colinhester
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To: rhombus
Willie Green is back on FR. I bought my first house at 8.9% and my friends were green with envy. America has turned into a 50% wussie country... falling all over itself because it will not look where it is putting it’s feet... too busy looking up waiting for the sky to fall. If you lived through catah... you know this is BS!

LLS

31 posted on 11/28/2007 7:49:14 AM PST by LibLieSlayer (Support America, Kill terrorists, Destroy dims!)
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To: Seajay

Jimmy Carter was a republican??


32 posted on 11/28/2007 7:54:15 AM PST by 66-442hot (It isn't smart to kill the golden goose........)
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To: Seajay

Jimmah oversaw the worst of it.


33 posted on 11/28/2007 7:57:45 AM PST by rightinthemiddle (Without the Media, the Left and Islamofacists are Nothing.)
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To: Baynative
With 30 year fixed rates as low as they’ve ever been why would people shun the market because of shaky ARMs?..

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.

34 posted on 11/28/2007 7:59:05 AM PST by Old North State
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To: Seajay

From lender411.com:

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.


35 posted on 11/28/2007 8:01:35 AM PST by rightinthemiddle (Without the Media, the Left and Islamofacists are Nothing.)
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To: jiggyboy

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.


36 posted on 11/28/2007 8:06:11 AM PST by hoppity
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To: Hydroshock

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?

For shame!


37 posted on 11/28/2007 8:10:00 AM PST by PugetSoundSoldier (Tagline: Kinda like a chorus line but without the legs)
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To: rhombus

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!!


38 posted on 11/28/2007 8:13:42 AM PST by Sacajaweau ("The Cracker" will be renamed "The Crapper")
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To: BlabItGrabIt

“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.


39 posted on 11/28/2007 8:17:18 AM PST by DemEater
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To: sean327

Congratulations


40 posted on 11/28/2007 9:23:19 AM PST by B4Ranch (( "Freedom is not free, but don't worry the U.S. Marine Corps will pay most of your share." ))
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