Rates Tanking to 5.5%?

[mukoh]

30 yr FNMA 5.5 Oct
100.26 +53/32 (+41/32 frm 10:00 Friday)

15 yr FNMA 5.0 Oct
100.12 +37/32 (+29/32 frm 10:00 Friday)

30 yr GNMA 5.5 Oct
101.09 +35/32 (+30/32 frm 10:00 Friday)

15 yr GNMA 5.0 Oct
100.17 +24/32 (+17/32 frm 10:00 Friday)

WOW!!
Is that even funny.

[Charles Dean]

THey rose a little thruout the week last week, but on the news of Lehman and Merrill, everyone dumped into the bond market, so rates are good again.

I think we may see them lower than 5.5% soon.

[rose-colored-coolaid]

[sniglet]

I fully expect mortgage rates to drop even FURTHER before the end of this financial crisis. T-bills and GSE bonds will be bid up to ridiculous levels as investors scramble to find relative safety.

Unfortunately, low mortgage rates won't necessarily help the real-estate market. If people are unable to qualify for loans as standards keep tightening, then even low rates won't matter. Neither will low rates be attractive for people concerned that they will lose their jobs.

We could reach a point where few want to buy simply because they expect prices to keep falling and don't want to hold a depreciating asset, even if the mortgage rates are at historically low levels.

[gooddeal]

Hi Sniglet, I just got pre-approved for a home loan. 5.5%, 97% LTV, no points, 1% origination fee. This will be my first time purchasing a home, ever, so I don't have much to reference against. I went to several mortgage brokers to shop around and I didn't have any problems getting pre-approved. Merely submitting an application and sending my W2, Paystubs, ID's and bank statements got me to that stage. I'm not familiar with the process so I need to ask, what part of the loan process is more difficult than previous besides not being able to do no doc? Would the financial crisis only hurt non-qualified buyers? So far it seems to me that if you have sufficient income to meet the required debt ratio and good credit getting a loan is still not difficult.

PS. My loan amount is $344k and my combined annual income is only 113K.

[perfectfire]

[mukoh]

Obviously the lending guidelines are tighter, however the regular vanila loans of few years ago are still plugging away at 3% down, 650+ score, documented income and assets. Seems to be no problems.
Its all the people with No doc, no assets, no down, 600 credit score that are packing.

[perfectfire]