When will the rates go down???

Mortgage and Lending with Republic State Mortgage Company

Does anyone have any theories?

Do any of you have weekly meetings that declare this event? How about just radio chatter on the way to and from?

Well, let me give you some examples of what I have listened to:

1. "What goes up must come down"...the market evolves every 6 years...

2. International involvement will be our only hope of rates coming down.

3. Toward the end of 2008 will be the next refi boom!

4. We are headed toward a sellers market as soon as all defaulted subprime and alt-a loans are purchased and start performing.

5. Rates will only go up from here...right along with the price of GAS!

 What are your top 5 theories? Do share...more to come.



 Jennifer Castle

Century Mortgage Company 


Comments (9)

Kate Bourland
Marketing with Kate - Redding, CA
Onlilne Marketing Mobile Marketing

Wow - I think that they are all nothing but theories.  As I understand it we shouldn't expect rates to go down.  Rates have been kept down in part to allow 3rd world countries (i.e. China) to develop their markets.  Now that China has developed into a significant world player we can expect rates to stay the same or climb.

This is very simplistic but I don't expect a drop in rates.  We are still at risk of inflation and until that goes away we won't see a shift in rates.  Just MHO.

The feds manage our economy in one of two ways:

1.  Adjusting Interest Rates

2.  Adding Liquidity - as we saw done on Friday.

Adjusting rates gives has a time delay in terms of it's effects on the market while directly adding liquidity has an instant effect.  We are seeing that today as the stock and bond markets have stabalized, at least temporarily.


Aug 13, 2007 05:50 AM
David A. Podgursky PA
THE PODGURSKY GROUP @ Re/Max Direct - Boynton Beach, FL
THE PODGURSKY GROUP - Make the Right Move!

I don't think the seller's market is due back anytime soon

so long as there are foreclosures looming it is inevitable that the buyers will reign!

Aug 13, 2007 05:59 AM
Jennifer Castle
Republic State Mortgage Company - Lexington, KY
I hear a lot of hope to see rates decrease. This will mostly help builders that have invested in homes that price at $450,000 +. I do agree that international players have a strong effect on our market conditions for home loan rates. In the end even experts are just in theory...we could see anything at this point.
Aug 13, 2007 06:21 AM
Jennifer Castle
Republic State Mortgage Company - Lexington, KY
David I completely agree. You are in a market where the average price of property on the market is much higher than here. Have you seen any dramatic changes in property exchange?
Aug 13, 2007 06:26 AM
Troy Smith
Bloomington, MN

IMO, the market is going to pick up some during the end of the first quarter of 2008.  I think that we will see lenders replacing the products that they are running from now.  Also, FHA is said to be changing (for the better) their guidelines.  I think that FHA may be the new sub-prime. 


Aug 13, 2007 08:32 AM
Lizette Fitzpatrick
Lizette Realty - Richmond KY - Lexington, KY
Lizette Realty, Lexington KY MLS - Kentucky Homes
I'm agree that the sellers market is history for quite awhile. In our area buyers aren't getting fantastic bargains. Some sellers still want too much for their homes.
Aug 13, 2007 09:36 AM
Jennifer Castle
Republic State Mortgage Company - Lexington, KY
Thor I couldn't agree more about FHA becoming the new subprime.
Aug 14, 2007 07:58 AM
Kurt Jackson
KJ Financial - Kansas City, MO

It appears that the Fed may be forced/decide to cut short term rates which will take ARM's down maybe enough to make them attractive enough again from a risk/reward perspective.  Since Fixed rates have basically be artificially low thanks to foreign appetite for our bonds if those same foreigners lose their appetite for our mortgage bonds with this fiasco then expect long term rates to go up.

Aug 15, 2007 10:44 AM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

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