All the Kings Horses and All the Kings RATES?

Mortgage and Lending NMLS #94045

Which way will rates go in 2009? Given a pervasive uncertainty means nobody is buying much of anything and home values keep plunging--how do we stop this merry-go-down? For starters, the Fed, the Treasury, the Securities and Exchange Commission and all the Kings Horses being trotted out to bolster confidence and not a moment too soon!

Low Now: OK, rates look great right now. Can they go lower? Unlikely. The jury is out on how long it will take to come up with a viable, actionable recovery plan and how long that plan will take to start working. Meanwhile, help for overextended borrowers who have Fannie Mae and Freddie Mac loans is a good start. Not perfect but a start. Naturally, those banks will benefit first. Fine. Somebody needs to get a leg up and over that horse and get it going. Ideally the fittest of our institutions will recover and live to lend responsibly again. Most of our better lenders are lending. They are just very, very picky.

Expose: Check out this MSNBC video series about the Mortgage Backed Securities and related Bonds, representing the so called risky loans. The interesting part is how the ratings companies who rated these bonds 'assumed' all was well. The video portrays one underwriter who refused to underwrite bad loans and later went to work investigating for the Wall Street investors and even they turned a blind eye to her warnings!

SO---while Fannie Mae/Freddie Mac/AIG and the Banking Industry all taking their lashings behind the woodshed, their public faces belie the real injury to their pride. Like good corporate soldiers the banks still standing are still lending money, albeit under MUCH tighter guidelines and MUCH more thorough oversight; tight lipped but getting on with it. No wonder our ability to borrow money at favorable rates is, well...something of a privilege these days! So if you are in a position to buy, borrow, refinance or invest...consider yourself very fortunate and do your own due diligence. From where we stand, it's a pretty great time to be investing in real estate. You've got to have nerves of steel to be investing on Wall Street right now and real estate is returning to favor with folks who have been on the sidelines.

OH, and what about that 'Rate Forecast"?-- get 'em while they're HOT!

Happy Spring! Loannetter




susan templeton
mortgage planner



510-MB-24707-50145    An approved Conventional, FHA/VA/USRDA and Reverse Mortgage Broker

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Winston Westbrook
Westbrook National Real Estate Co - Victorville, CA

Great post Susan. I hope these rates stay this low for at least the latter part of this year. It would be a good point of low rates and great home prices

Mar 25, 2009 12:49 PM #1
Mike Linkenauger
LinkUp Realty - Jacksonville, FL
Short Sale Realtor - Jacksonville FL

Rates will definately be going down even more at some point this year, I highly doubt our governent will let them go higher, no matter what! 

Mar 25, 2009 12:53 PM #2
Katerina Gasset
Get It Done For Me Virtual Services - Wellington, FL
Get It Done For Me Virtual Services

Susan- The rates are low right now and people need to jump on board now. They are gambling if they hold out. Inflation is going to set in. The treasury is busy printing money in the basement and when that happens, inflation is inevitable. I was a real estate agent during the Jimmy Carter years, not too many people these days remember the 18 to 21% mortgages we were trying to get done back in those days! No one could get qualified so we went to wrap arounds, which are no more  because after that the banks added the due on sale clause. I have been through a couple of recessions in my life time as an agent. We will get through it as always we do.

Remember the rule: what goes up must come down and visa versa. Katerina

Mar 25, 2009 01:45 PM #3
Ken Cook
Content, coding, marketing, host. - Marietta, GA
Content Marketer/Creator

But CNN said ...

I had no less than a dozen calls from active borrowers wanting to know why their rate wasn't 4% like they heard on CNN. Which prompted my blog post a couple of days ago. It makes it tough on we honest mortgage bankers when the news gets it wrong with our customer base. By the way, don't assume the ratings companies thought those were secure and stable MBS investments - anything can be bought for a price.

Mar 25, 2009 04:03 PM #4
Susan Templeton
Bellingham, WA

Winston, I agree...nice to have the business for a change! We have been bouncing off the bottom for a while and every time the market gets a little run up it falls flat so I imagine what I hear from traders we can pick our moments just like they do!

Mar 25, 2009 04:07 PM #5
Susan Templeton
Bellingham, WA

Mike, I think 'our government' is playing to the public while 'our banks' are playing to their pockets. Don't count on favors for consumers meanwhile.

Mar 25, 2009 04:08 PM #6
Susan Templeton
Bellingham, WA

Hi Nestor and Katerina, Yes, I remember 'those rates' and hopefully we won't see the likes of double digits this year!

Mar 25, 2009 04:09 PM #7
Susan Templeton
Bellingham, WA

Hi Ken, Wow, hit a soft spot eh? Don't we just love the bloomin press for telling our buyers and borrowers what to expect?

Mar 25, 2009 04:10 PM #8
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