Posted on 09/29/2011 8:29:10 AM PDT by Free Vulcan
Average rates on fixed-rate mortgages hit record lows this week, with the 30-year fixed-rate mortgage averaging 4.01%, according to Freddie Macs weekly survey of conforming mortgage rates.
Fixed mortgage rates fell to all-time record lows this week following the Federal Reserves announcement of its Maturity Extension Program and additional purchases of mortgage-backed securities, said Frank Nothaft, vice president and chief economist of Freddie Mac, in a statement.
(Excerpt) Read more at marketwatch.com ...
30-year fixed rate mortgage 4%?
This is a pretty incredible deal for someone who was going to buy anyway am I right?
Surely rates are going to be much higher and not much lower in that time period.
What do others think?
When 15 year mortgages hit 3 percent, we’re in.
Are you remortgaging, or buying a new place?
Yes, I agree, a great deal!
I just refied for 3.5% for 10 years. : )
I just locked a 30 year fixed rate mortgage at 3.91% A freaking 30 year fixed rate at 3.91%! The rates could potentially go down a little more, but I can’t imagine a 30 year rate much lower than that. My current rate was 5.0%.
Yes. Marx, Stalin, and Mao all moved private property into complete govt. control at gunpoint. The creation of legally non-marketable property (call Mortgage “Backed” Securities “non-property”, with no paper trail of original notes and titles extant) means the former private properties must remain in complete govt control, as with the application of a one-way fish basket trap, for the continual non-exposure of the derivative risks to our biggest banks, insolvent if the values of the properties are exposed at true private market value (of course, with no papers, they have little legal value, and the courts are confirming that foreclosures of non-property with no papers are not legitimate for claims. It is the very creation of mortgage backed securities by banks with the destruction of the legal records that has served the govts. purpose of requiring that the properties remain nationalized in govt hands to avoid exposure of the bank fraud and force the taxpayer to pay for all the fraud as well as the destruction of private property, a non Constitutional act in itself.
Existing 30 year note.
Got a 3.25% 15 year on a 6-year old house (foreclosure) that was less that 100K.
Not only are those amazingly low, but the 15-year rate was so low that for the same amount borrowed, it would have lower payments than the 30-year mortgage (in addition to being paid off twice as fast).
I would dearly love to take advantage of this, but I'm currently unemployed, and I would have to come up with $50,000+ to be able to get an 20/80 mortgage.
The correct policy at this point is to let long term rates float to where they should be (10-15% depending on various risks) and let the economy readjust to that new reality.
Last year we finished the basement with a home equity line of credit, and then rolled it into a refi of the mortgage. 10 years @ 3.75%. When the home is paid off, I’m ready for the glide path to retirement.
I think the Fed’s main goal right now is to move away from short term instruments to longer term instruments. They are attempting to avoid Weimar-style turbo-inflaton, which was caused by the Kaiser’s government financing the war by selling debt to themselves with short term instruments. When the massive amount of war debt came due in the 1920s, there were no takers. So Weimar Germany had to print money to paper it over.
This is just a way to try to avoid that by re-arranging deck chairs.
For comparative purposes, consider that in the 1960s the discount rate was 4+% and the mortgage rate was 5.5-5.75%.
In terms of the big picture (what to do) - I have no idea, but I'm leaning to borrowing a lot and locking in a long rate of 4% being smart. This is a pro-inflation view (meaning, I think inflation is likely), that might be wrong, so YMMV. In a deflationary crisis, a big mortgage at 4% when incomes are falling consistently could be a terrible move - IF you think they really will make you pay.
inflation has generally trended with interest rates, but it doesn’t have to be so, especially if printing money is the cause of the inflation,
I think.
http://www.quickenloans.com/home-loans/15-year-fixed
seems quicken 15 yr is 3.375. Do you know where you saw it?
Maybe it was Lending Tree. As I type this, they are advertising a 15-year for 2.875%.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.