FHA @ 7% today
30 YR Fixed just priced one out @ 6.75 and the credit was excellent
A little forwarning trying and warm your clients up to the idea that rates are going to get worse and will continue to for some unkown amount of time. This idea of low rates spurring growth is way to late in the game to make a difference so the long postiton on rates is that once we realize growth will no longer be fueled by low rates, they will begin to rise as the market starts to stabilize the right way...Rewarding risk with return on investment is the only model for mortgages that will be left after the collapse of the 2ndary market. I just want people to warm up to the idea of higher rates now so it is not a shock later. For anyone who thinks that rates will not go up to 14% read some history. After a crisis half as bad as this one in the late seventies 30 years mortgage rates shot up in two years 5%, this will not likely happen in todays market; it will definatly happen. Just remeber this: You heard is here first...
America stay strong there are rough waters ahead...
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