Mortgage Rates News

What exactly does the Fed’s recent rate cut mean?

“On Friday, the Fed’s move to cut its discount rate by 50 basis points to 5.75% was seen as an attempt to help distressed banks borrow money”

I have read so many news articles about banks getting lower rates (like over-night lending to other banks) but what types of loans do they effect?

1) Will ARM mortages adjust lower?
2) Will traditional 30-yr mortgages fall? If so, to what APR?
3) Will my student loans change?
4) Will credit card companies be giving better interest rates?
5) Will the interest rate on my online savings account go down?

Where is private money found for Real Estate investing?

I’m looking for a private equity type of lending outfit.
While I’ve heard about private mortgage brokers and such things like that – there is no evidence, none that I have seen, that they actually are out there (though I know they must be)

Being stranded out in the middle of Kansas is making it difficult for me to find any lenders who will work with me. I can work with a >60%LTV and rates as high as 22%, the problem here is my personal credit is bad news and I’ve not got any cash right at this moment here.

The right lender will make quite a bit of money with me as I don’t play games or come up with any stupid ideas. I simple haven’t found him/her/them/it (something/someone with enough brains to work with me) so far!
wolfgang007,
I am not going to let bad credit stop me. Forget it!
Thank you Mr. Gee..
Don’t worry I don’t let being turned down bother me and I certainly won’t worry about what someone who can not spell “you’re” has to say PS: I’m looking at rehab projects.. fix and flip type of a story.

Was S&P downgrading U.S. rating retribution for Federal mortgage probe?

Standard & Poors is responsible for much of our economy tanking by inflating mortgage ratings packages so the Federal Gov FINALLY got around to investigating their culpability. Apparently this probe began BEFORE the U.S. August 5th downgrade to AA+, so is it possible this was payback message to show how vulnerable we are for targeting S&P?

http://www.nydailynews.com/news/national/2011/08/17/2011-08-17_sp_mortgage_ratings_probed.html?r=topnews

How come Obama has yet another of his “historic accomplishments” in the housing market?

Aug. 23 (Bloomberg) — Sales of new U.S. homes declined more than projected in July to the lowest level in five months, indicating the industry is struggling to stabilize two years into the economic recovery.

Purchases fell 0.7 percent to a 298,000 annual pace after a 300,000 rate in June that was slower than previously estimated, figures from the Commerce Department showed today in Washington. The median projection in a Bloomberg News survey of economists called for a 310,000 rate in July.

Builders are less inclined to start new projects as they face competition from cheaper existing homes and the prospect of foreclosures putting more unsold properties on the market. A jobless rate above 9 percent and limited employment growth indicate housing may keep weighing on the recovery even with mortgage rates at a record low.

http://www.businessweek.com/news/2011-08-23/new-home-sales-in-u-s-drop-to-lowest-level-in-five-months.html

Why attack me, I am just the messenger
Glass the ‘rich’ hire people, the poor don’t

If you redesigned high school curriculum, what kinds of classes would you create?

For example, kids graduating high school these days have no training in how their credit rating works, how to get a mortgage, how to invest. They don’t know how to advance their careers, how to hold a marriage together, how to raise children.

Thinking about the recent cover story in Time magazine, they don’t know how to assess risk in the modern world. Judging by the popularity of some conspiracy theories, they haven’t learned to think carefully about events in the news.

Our educational curriculum was designed in the 19th century and hasn’t changed much since. Back then, young adults didn’t have as many choices, they had more support from family and community, and were less likely, for example, to move a few thousand miles from where they grew up.

What kinds of classes would you suggest to bring our education system into the 21st century?
Sorry, the main question should have read “If you redesigned *the* high school curriculum…” Yes, I did take English classes in high school, but I didn’t do that well at proof-reading!
ProfessorMaddie – I agree. Back in the 19th century, no one needed to tell us to exercise more and avoid junk food. And it seems like Physical Education could be redesigned to have less emphasis on sports and more on nutrition.
namowal – I agree with the intent of your suggestion, but the implementation details may need more work.

In the past, some of this was accomplished through classes in debate an philosophy. Perhaps these classes could be reworked to accomplish your suggestion.
linlyons – I agree that, in order to add new classes, some existing class must be shortened.

We could re-tune existing classes to make them shorter while retaining the core.

For example, I love math and have a degree in it, but I recognize that most people don’t get much out of their classes.

In fact, the main thing they should get out of math is the ability to apply math to every day situations. I doubt many people have used trigonometry recently.

The math-related ability I find most lacking today is the capacity to quantify things in everyday life, and then use those numbers in some meaningful way.

In short, I think math education today fails to transmit its most useful feature, while emphasizing specialized aspects.

To sum up, perhaps we could shorten our math curriculum so that most people emphasize applied math. We could spend the time thus freed on new classes, while people, with an interest and talent for math, like me, could to take more classes.
magpiesmn – I totally agree that choice is key to motivating students. Particularly since kids of that age have a natural rebelliousness that can backfire on them in school.

However, I also think educators have a duty to broaden students’ outlooks and expose them to things they might not otherwise have considered.
robertmindriver – When the American education system was designed, it was totally focused on practicality. It was also designed for different times, so yes, I think there should be more emphasis on the real world as it exists today.

After re-reading my original question, I’m not sure why you think I advocate teaching morality, but we could consider adding it. Why? Because life today has more complicated moral choices, and some kids don’t get the moral education they once received in church.

As far as the two-track system you seem to be endorsing, there is some merit it that. But I also would like to see new classes, for example some practical economic education. As a young adult, I personally could have benefited greatly from a class in practical finance.

And with regard to more vocational training, we also need to keep in mind the dwindling need for blue-collar workers on today’s global economy.
“Mr. Wise” – it has become an unthinking mantra today that kids receive a poor education in math and science.

And yet we rarely think about what parts of a math and science education are genuinely useful for most people. In other words, studying math and science is not an intrinsic good, it must serve some broader purpose.

IMHO, the current math and science program alienates many while failing to convey the parts which could truly help people cope in a modern world.

I’m surprised at your assumption that a system designed to server a dramatically different society should not be re-evaluated.

I think you should ask yourself 1) what purpose should an education accomplish, 2) how well is our system achieving those goals, and if it is failing any goals, 3) what changes could we make to improve it.

Simply defending the status quo, when so much has changed, strikes me as an excuse not to think critically about where our society is headed.
Magpiesmn – I understand your concern over the government being responsible for broadening student’s horizons. Perhaps that is one reason why it might have been a mistake switch from local control over schools to our current model, wherein the federal government is responsible for probably too much.

Yet I can’t help that feel that while perhaps you do a good job at this, on average most of us fail dismally. In fact, I’d bet that the average parent wants to make a little clone of themselves.

And most of us don’t have the degree of specialization necessary to expose children to diverse topics such as dramatic arts, visual arts and the performing arts, or to teach them about foreign cultures or different ways of thinking. This is what broadening horizons is about, not, as you may fear, political indoctrination.

The Fed is Going to Reduce the Rate Close to Zero – Is This Good News?

This is ominous, because this is being done to ward off the worst of all scenario’s, DEFLATION.

Which means drastic reduction in living expenses.
Which sounds really good, right? WRONG

Because factories and business will take it in the teeth because they will not be able to cover the cost of doing business. They will have to drastically reduce their payroll and operating expenses, which means layoffs, and even going out of business.

Which means
Wage cuts
Benefits cuts
Even lose your job and most everyone else you know is in the same boat.
What is your lender going to do about your mortgage, your car loan, student loan, credit card?
Your stock portfolio is going to plummet too
So is your 401K and all your other retirement funds.

Remember all the people telling people to stop whining and be responsible?

This is a last ditch effort by the FED.

Who is the FED—-Federal Reserve System?
They are the people who control all aspects of our money
AND
It is a private organization that not even our congress knows who all the players in that system are.

They got us into this mess, they are destroying your life and America.

Are you getting mad?

========
WASHINGTON (AFP) – Federal Reserve policymakers were expected to lower key rates close to zero Tuesday in the latest effort to battle a crippling credit crunch and stave off deflation, analysts said.
BILLY.

Listen, the fed goes to zero and that doesn’t work, then what will they do, go to less then zero, or print more worthless money, or what?

.

How has the Eurozone crisis affected Britain?

It’s on the news all the time about it affecting Britains economy, but what effect has it had on us? I haven’t noticed any- other than low interest rates meaning mortgages, loans, etc. are been payed off faster

How am i ever going to be able to afford to buy?!?

After hearing on the news this morning that interest rates will yet again be rising i cant help but seeing my moving out next year to be nothing but a pipe dream!

Me and my Boyfriend both earn good money for our age, we dont have any debts hanging over our heads, but how can we seriously be able to afford to move out when Mortgages and house prices keep going up and it prices us out the market!

We just want somewhere to settle down and start a family! Too much too ask? Obviously yes!

Anyone else got this sort of problem?

Isn’t Fannie Mae in the process of creating ANOTHER subprime-esque crises?? (ask for additional $23B)?

On Friday, the U.S. government said the unemployment rate rose to 8.9 percent in April, the highest since September 1983.

Fannie Mae’s guaranty business, “including loans with lower risk characteristics, has begun to experience increases in delinquency and default rates as a result of the sharp rise in unemployment, the continued decline in home prices, the prolonged downturn in the economy” and the rise in loan balances relative to property values, it said.

What’s more, Fannie Mae said its role as a linchpin in President Barack Obama’s program to boost refinancings and modifications of risky mortgages will likely have a “material adverse effect” on its business and net worth.

The programs, which can reduce interest rates on loans and defer payments, lend credence to speculation the U.S. is increasing its reliance on Fannie Mae and rival Freddie Mac (FRE.P) to stabilize housing, even if it’s at the cost of shareholders.

Fannie Mae said it will probably have to return to Treasury for more capital in the future.

“All the signs indicate that Fannie Mae coming out of conservatorship and becoming a public company again are close to zero,” said Gary Gordon, a managing director at Portales Partners in New York.

The $23.2 billion loss compares with deficits of $2.2 billion in the year ago period, and $25.2 billion in the previous quarter.

http://news.yahoo.com/s/nm/20090508/bs_nm/us_fanniemae_results;_ylt=AppVDEfBGcAq8PDUFdEBMI5H2ocA;_ylu=X3oDMTJub2JhZHRpBGFzc2V0A25tLzIwMDkwNTA4L3VzX2Zhbm5pZW1hZV9yZXN1bHRzBGNwb3MDNQRwb3MDNQRzZWMDeW5fdG9wX3N0b3JpZXMEc2xrA2Zhbm5pZW1hZXRhcA–

Everyone knows how loose mortgage underwriting led to the go-go days of multitrillion-dollar subprime lending. What isn’t well known is that a parallel subprime market has emerged over the past year — all made possible by the Federal Housing Administration. This also won’t end happily for taxpayers or the housing market.

Last year banks issued $180 billion of new mortgages insured by the FHA, which means they carry a 100% taxpayer guarantee. Many of these have the same characteristics as subprime loans: low downpayment requirements, high-risk borrowers, and in many cases shady mortgage originators. FHA now insures nearly one of every three new mortgages, up from 2% in 2006.

http://online.wsj.com/article_email/SB124139474675481713-lMyQjAxMDI5NDAxNDMwOTQ0Wj.html

Today, Fannie Mae operates under a congressional charter that directs the company to increase the availability and affordability of homeownership for low-, moderate-, and middle-income Americans. Fannie Mae is authorized to buy Federal Housing Administration (FHA) insured mortgages, thereby replenishing the supply of lendable money.

Freddie Mac is also a publicly held corporation, chartered by Congress in 1970. Freddie Mac came into being as the Federal Home Loan Mortgage Corporation (FHLMC) with the mission to create a continuous flow of funds to mortgage lenders. By supplying lenders with the money to make mortgages and packaging the mortgages into marketable securities, Freddie Mac also helps to sustain a stable mortgage credit system which in turn, reduces the mortgage rates paid by homebuyers. Over the years, Freddie Mac has been responsible for opening the door to homeownership for one out of six home buyers in America who would not have qualified otherwise.

http://realtytimes.com/rtpages/19981116_fanniefred.htm