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1   inflection point   2011 Feb 10, 12:39pm  

Not good news if you want a 30 year mortgage or you are trying to sell a house.

2   joshuatrio   2011 Feb 10, 12:50pm  

Maybe we'll see panic buying...

*cough* *cough* **clears throat**

"BUY NOW BEFORE RATES GO UP !!"

3   inflection point   2011 Feb 10, 12:57pm  

I am quite suprised that there is a much buying that has been going on in the last six months. Homes tend to sell within 30 days here in my part of Fremont Ca.

4   bubblesitter   2011 Feb 10, 1:47pm  

Yep! buy now still almost historical low rate. The best time to buy was in 2006 at 3% rate(ARM) :)

5   inflection point   2011 Feb 13, 11:27am  

Its a great opportunity to lock in historically low loan rates and high home prices.

6   American in Japan   2011 Feb 13, 7:48pm  

>Yep! buy now still almost historical low rate. The best time to buy was in 2006 at 3% rate(ARM)

However the paradox... to whom will the next batch of homes be sold after that?... (as the new rates allow less "house" to be bought).

See Troy's comment for details:

http://patrick.net/?p=615063#comment-714725

7   FortWayne   2011 Feb 13, 11:39pm  

I don't think that article is very accurate. You can still get 4% in our area.

8   HousingWatcher   2011 Feb 14, 3:05am  

Since when is 5.05% considered high? Newsflash: At the peak of the bubble, interest rates were HIGHER than they are now.

9   Hysteresis   2011 Feb 14, 3:29am  

HousingWatcher says

Since when is 5.05% considered high? Newsflash: At the peak of the bubble, interest rates were HIGHER than they are now.

5% is high when you can barely make the mortgage payment at 4.x%.

10   Â¥   2011 Feb 14, 4:09am  

HousingWatcher says

At the peak of the bubble, interest rates were HIGHER than they are now.

Wrong, Daddy-o. While 30-year fixed never got below 5.5%, teaser-rate IO / pay-option products were giving people effective rates of 2-3% during the bubble.

11   HousingWatcher   2011 Feb 14, 9:31am  

I was referring to 30 year fixed loans. At the peak, even 15 year fixed lonas never got near 5% and they generally have the lowest rates of fixed mortages.

12   Â¥   2011 Feb 14, 10:01am  

HousingWatcher says

At the peak, even 15 year fixed lonas never got near 5% and they generally have the lowest rates of fixed mortages.

Prices in the bubble areas were being set by the suicide loans. Casey Serin's general MO was cashback at closing 2/28 interest-only for 2 years 30 year amortization due in 15. Stated income of course.

So the fact that interest rates were higher in 2004-2005 doesn't reflect the reality that the actual lending limits were much more relaxed back then, plus everyone in the market was greedily chasing the YOY appreciation and willing to pay the speculative premium of the time.

We may get that again but the banks, GSEs, and government sure seems to be not willing to see another boom come anytime soon.

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