Posted by 101livescan on 7/2/08 8:33am
Msg #253891

Interest Rates

Just reading on mortgage daily report this morning: Rates Continue Higher
Fixed mortgage rates rose for the fifth consecutive week to the highest level in 10 months as 1003 loan applications worsened. Hopefully this summer interest rates will improve and we'll have a flurry of work, we'll see.

Reply by CF on 7/2/08 8:41am
Msg #253894

Some bankers that I work with think that if rates do not decrease by this fall- that there will be more people to re-fi, in fear, of inflation and what happened years ago; even at the higher rate and they will buy-down. Could go either way. All signs are pointing to inflation...food and gas are higher- wages are down- if the interst rate continues to rise we will be in a real recession. Pretty scarey what is going on....and it is going to continue to degrade until the election and then for some time after that. My opinion is based off my reading in Busines Week and The Economist and the bankers that I work with.

Reply by ME/NJ on 7/2/08 9:19am
Msg #253895

Inflation and oil are keeping things down right now. I thought the Feds would raise short term rates in June.(to be honest they should of) Look to see a 1/2-3/4 point increase by December.

I don't know what will change the current conditions for now, I think we will see 8% or higher for long term loans by late 2009, better when I was I kid my dad said interest rates were in the mid teens.

So lets see what needs to change

Land values- at least a few more years @ this rate before increase

Bank Guidelines - They won't ease up till they feel the market is stable and they recoupe from the sub prime mess

Oil prices - unless laws change to control Wall St speculators, we are going to pay big. (btw -most people in DC make good money from the oil people)

Inflation - We have been lucky for the last 10 years or so, guess we need to pay now

Jobs - don't know about you, but many people have lost there jobs over the last 4 years(unless you work for the goverment ie: police, teacher, govt employee) If you do not deal direct with a Customer your job is not needed in the USA anymore

I know my habbits have changed alot in the last year with a major drop in income, alot of things need to change for it to get better for us just not sure how many of us will be around when it happens.

Reply by 101livescan on 7/2/08 12:42pm
Msg #253927

Good synopsis of current financial trends, you're right about values and interest rates. I remember my mother had a World Savings Loan at 18% a while back.

Eating more peanut butter and jelly sandwiches and less sushi, and eating at home! Went to Costco last night and splurged with shrimp round and nice bottle of Kendall Jackson Chardonnay, that too will wain as I try to figure more ways to lower the principal balance of my own mortgage, like a savings account, hopefully.

I'm amazed at the loss of jobs and lack of job growth here in CA...People are flocking to medical care related and government jobs.