Fed Aid Sets Off a Rush to Refinance

[Bama Bayou]

Bama said, Lower rates mean more appraisal work, and higher rates mean less.

Rising interest rates mean more work. Falling rates mean borrowers
will wait, hoping for a lower rate.

Loan applications usually rise at rates fall and fall as rates rise.

 

[Bama Bayou]

Mortgage apps way up due to lower rates:


http://money.cnn.com/2008/12/03/real_estate/mortgage_applications/index.htm?postversion=2008120311

 

[Karl]

Why & how do you think anyone is going to qualify for a REFI when most are upside down by 40+/- % ??? Add the new idea that the borrower has to have decent credit & a JOB!!! & lets see how many REFI assignments you actually get.

 

[Bama Bayou]

Why & how do you think anyone is going to qualify for a REFI when most are upside down by 40+/- % ??? Add the new idea that the borrower has to have decent credit & a JOB!!! & lets see how many REFI assignments you actually get.

All markets are local. The unemployment rate here is 4.5%. That means 95.5% have jobs. The only submarket in these parts down 40% is resort condos and the sold prices have been stable during the last year (this market started tanking in the summer of 2005). The single family market is down from the peak by about 10%.

Not everyone is unemployed, upside down, and having credit problems. Not everyone bought at the top of the market either. I have been doing a lot of refis for people who paid cash during the last year who are now taking advantage of low rates. Others purchased in the decade before prices peaked, never cashed out to buy a Hummer, and have plenty of equity.

 

[Riick]

Refinance Dance || Refinance Dance || Refinance Dance || Refinance Dance || Refinance Dance ​

.​

............ We need $325,000 to qualify for this loan.

.​

So Sorry Mr. Loan Officer, but the current value of that home looks to be
just a red gnat's hair higher than acquisition cost in 2004.

Maybe those homes were selling for over $300,000 in '05 & '06,
but high sales in 2008 are............ not much

.
.​

 

[Lloyd Bonafide]

Treasury Plan: Rates Could Be as Low as 4.5%


http://online.wsj.com/article/SB122833771718976731.html

WASHINGTON -- The Treasury Department is considering a plan to revitalize the U.S. housing market by reducing mortgage rates for new loans, according to people familiar with the matter.

The plan, which is in the development stages, would use mortgage giants Fannie Mae and Freddie Mac to bring loan rates down as low as 4.5%, a full percentage point lower than the prevailing rates for 30-year fixed mortgages.

Government officials are under pressure to stem foreclosures, which underpin much of the current financial crisis. Treasury has struggled for months to come up with a plan that would ease the market without appearing to bail out homeowners and lenders.

Even in areas where half of the homeowners have little or no equity, and another quarter of the homeowners can't qualify for a loan, this could put some appraisers back to the point where they can at least eat!

Let's go to 4%! Or maybe 3.5%!

 

[Riick]

At 4.5% count me in.
Would save me a quick $1,800/yr

 

[Deleted member 77547]

I've had a nice spike in appraisal orders over the past 3 days. 12 new orders which is about what I had in all of November.