Remember how some thought that rates would skyrocket after QE2 ended in June? From the AP:
WASHINGTON (AP) — Fixed mortgage rates were mostly unchanged this week, inching up from their yearly lows.
The average rate on the 30-year fixed loan ticked up to 4.52 percent from 4.51 percent a week ago, Freddie Mac said Thursday. It reached its yearly low of 4.49 percent a month ago.
The average rate on the 15-year fixed loan, popular for refinancing, nudged up to 3.66 percent from 3.65 percent, its low point for the year.
Mortgage rates typically track the yield on the 10-year Treasury note. Yields fall when prices rise. In the past week, yields have been stable even though Congress and the Obama administration are less than two weeks away from a possible default on the government’s debt.
Negotiations to raise the government’s $14.3 trillion borrowing limit have yet to produce a deal that can pass both chambers of Congress, although a bipartisan Senate plan has drawn support from President Obama.
Low mortgage rates and depressed home prices have done little to revive the struggling housing market. Many people simply can’t take advantage of the historically low rates because of tighter lending standards and bigger required down payments.
Other potential homebuyers are holding off, concerned that housing prices will continue to fall.
Few economists expect the housing market to rebound before 2013.
JtR,
Generally speaking, are your clients that are buying financing with at least 20%, despite the large % of FHA buyers out there?
I was curious to hear roughly what the monthly magic number for a mortgage payment was for homebuyers in your area.
Since no one can predict the market, I wonder if rising interests rates would lead to a lowering of home price to match the “magic number” mentioned above?
It seemed that in the past this was what helped actual prices rise and became a catch slogan a la “historically low interest rates” as a reason to buy at that time.
Jim – can you do a piece/blog on purchasing a vacation rental? Say Big Bear or Catalina Island. We are considering this but would love to hear your thoughts on whether is this a bad time or ok time. I’m looking at spending $200k and put down $80k.
Thanks.
if Tea Baggers fail to raise the debt ceiling, you’ll see interest rates spike massively.
Since, we saw housing is going no where with historically low interest rates & Historically Low price of houses, can we increase the interest rates(say 6%+ ) and see, if the house buying activity increases :).
Jim-I got the winning loot today. Thanks. Love the shirts and great seats!
As predicted by JtR, no shock waves from the end of QE2.
Daniel, you’re welcome – send a photo from the game!
Why does “Former RB Resident” think that sexual deviants should raise the debt ceiling?