REALITY CHECK. DON'T BELIEVE FOR ONE MINUTE THAT LOWER INTEREST RATES WILL HELP THAT MUCH.

Most people who NEED to refinance because their mortgages have reset simply don't have the equity to do so.  The reason is they made it a stretch to get in on an interest only mortgage to begin with because they had no money.  Couple that with negative equity over the past 24 months or so and you have a recipe that simply doesn't work.  NOW on the other hand, those that have equity and are "fiscally responsible" (if that phrase sounds familiar it is because that is what OWE'MALLEY preached he was when running against Erhlick for Governor) with their money can benefit from the lower rates.  I locked in to refi my own mortgage a few weeks ago for 4.75% on a 30 year.  Not bad from 6.125% when I bought the home less than 2 years ago... 

You are so right.  The homeowner is the one that needs the help not Wall Street.

Yep....buyers need to be able to buy homes and seller need to be realistic about their value....it does no good if the home won't appraise or if the buyer can't qualify in the first place...and I too agree that the next election will be very "telling"

Lenn, I agree and disagree.  But the fact remains that much of the problem we are facing goes back to people buying properties that they couldn't realistically afford.  They came in with marginal ability to pay, and didn't care.  They used loan products they didn't (or possibly couldn't) understand.  Thinking that they would always be able to get out for more and be ok was not a wise strategy. 

Of course, there is blame for the banks and other institutions (spelled G-O-V-E-R-N-M-E-N-T) that not only allowed, but encouraged it... 

But, the fact remains that there were a lot of people that made poor decisions.  It wasn't that they didn't understand values... it was that they just assumed they could only go up.  And our industry didn't bother to say anything but "sure!"

Me too, Lenn! Although...I must say that I'm hopeful that the lower rates will make it easier for 1st time home buyers to get into the game. 

Happy New Year, my friend!!! May 2009 be THE YEAR that ALL YOUR DREAMS COME TRUE!! ~GBU~

Lenn - When will we ever learn that politicians will promise the sun and the moon all for a vote and then after being elected conveniently say you misunderstood what they were promising or that wow circumstances have changed and it's not their fault they can't deliver.

MORNING LENN...I am one of those people, sitting on the edge of my chair, hoping like heck my house will appraise - and that my credit score is high enough - and that I have enough reserves in the bank - and that I didn't spend too much over Christmas on the credit cards to raise eyebrows (and goodness knows - I hope they read carefully to see that $500 spent last week was on food - not a TV) - and that as I wait for my package to come out of underwriting with perhaps more conditions...I thought the same thing - so what on the low interest rate - all the hard working folks that called and wanted to buy a bigger house or refinance to take advantage of lower rates - didn't meet the criteria.  And I may not either.  So YES - let's hope more people get tired of saying "maybe soon" and vote for common sense. -- Happy New Year and thanks for making sense!  -- Gabrielle

You're absolutely right about the appraisal being the key to refinancing.  I haven't put much faith in the the lower rates to help most existing home owners.  Now my purchase clients are very happy, low rates and low prices. 

Lenn...  One of the things I like most about you is that I can respect you immensely and still (rarely) disagree with you.  Thank you. 

I suspect there are going to be a lot more "move down" buyers than "move up" buyers in the near future.  With unemployment rising, wages falling, less capital gain on the current house sale, and the new emphasis on frugality and responsibility, the days of always moving up are coming to a close.

I can see your point about interest rates. There is so much that plays into where we are in the market and so many people who feel stuck and often are.

Lenn, Lower rates are good if 1.Buyers credit meets or exceeds new lender criteria  2. Buyers are secure in their jobs and of course #3. An acceptable appraisal.  It pains me to see hardworking Americans struggle to keep current on their mortgage payments. I'm not talking about subprime buyers who really should have stayed renters. I'm talking about Mr & Mrs Smith who made a fair offer on a nice house in a lovely part of town. It's interesting to note how the bailout was completed oh so quickly.  Real estate is the backbone of this economy. Someone buys a house. They go to the garden center for new plants. The local tradesperson is hired to refinish the hardwood floors. On to painting rooms and perhaps new kitchen appliances. Maybe next summer they plan to install a new patio.  Here's hoping that we soon start to work our way out of this predicament.

My websites has been exploding with people searching for homes, but is way down in terms of people actually seriously ready/able to buy.