What's going on with homebuyers these days in regards to rates? Today's 30 yr fixed rate is at 5.25% and most people I talk to think that's a terrible rate. Am I missing something here???? I am absolutely astounded that I hear this all day long from clients and potential clients. The news media has spun the hopes of a 4% 30 yr fixed rate out of control - not too mention all the lenders that advertise a reduculously low rate but don't show the 3+ points needed to get that rate!! The public is helplessly misguided consistantly and it only makes my job harder!

I've been in lending now for 7+ years and I've seen a moderate rate change "gap"- meaning the lowest I've seen on a 30 yr fixed is 4.5% and the highest I've seen is around 7% (I say moderate because of the rates in the 1980's were 12%+)

I have 5 clients that were ready to do a FHA / VA streamline refinance who I reccommend to lock at 4.75% last week and they all thought the rates would get better and wanted to wait to lock (float) - against my reccomendation and now they are all looking at a 5.25% rate and they aren't interested in refinancing at this time. This is how bad the media and the misleading ads on the internet, advertising and mail the clients recieve has skewed their thinking.

Gerard Ladalardo, CMPS
www.caloanpros.com
www.eproperthomes.com