Nothing!

Plain and simple - well not so simple, but....

The pure and simple fact is, rates are not our issue. The issue is the banks, lenders and investors - and their guidelines. As long as the guidelines stay as tight as they are currently low rates don't matter! They're great to hear about and yes they stir up attention and may even cause a few more phone calls but when those people apply - WILL THEY GET APPROVED??

Well if they have perfect credit and money down they will, but add one little negative line item on their credit or have a score below 700 and watch the interest rate raise quickly and their qualification start to dissipate. Now ask yourself how good does lowering the interest rate do us.

Listen - the bottom line is we can mess with the rates all day long, hell we can even lower the 30yr fixed down to 1%, it still won't qualify any more people than qualify at 5% or even at 7%, because at the end of the day - we still have the same guidelines that keep getting tighter every day. So until our investors loosen up the guidelines and allow more people to qualify, expect delays and fall outs.

Oh! And let's not forget appraisals. Through in a low appraisal on top of the above - good times!

Sorry not trying to be a Scrooge but let's ALL wake up and smell the over compensating factors of our investors shall we.

Kudos to our Government for stepping in and at the very least doing their best at helping the crisis that we're in. But at some point they need to step back and let the people that are in charge of setting the guidelines for loans, not just mortgages but auto, credit, student and all the other loans that require a "qualification" - it's their turn NOW and they need to do their thing to loosen the guidelines. Because at the end of the day will you be able to qualify for that low rate.?

Best Regards,

Will