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Saturday Night Prediction: 30 Year Fixed Rates Will Fall Below 1945 Level This Week

By Mike Jones

Mortgage and Lending with SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) NMLS 223495

March 21, 2009 04:06 PM

Rutgers (NJ) University Press is the publisher of A History of Interest Rates by Homer & Sylla. Google it and you can buy it on Amazon. According to the authors, the average mortgage rate in 1945 was 4.7%. I'm no youngster, and I came along in '48.

4.7% for a 30 year fixed rate? I locked a client this past week on a cashout refinance at 4.75% on a 30 year fixed rate mortgage, at less than 60% loan to value. 1 point origination, no discount points. No junk fees. That was Thursday, and the next day, that rate had evaporated.

Friday, rates were up again, but I believe they will ease this coming week. I'll come back and let you know whether I'm a hero or a goat!

___________________________________________________

I'm Mike in Tucson, your preferred Tucson, AZ Mortgage lender.

Think of me as your Tucson mortgage expert.

Call me if I can help you with a purchase or refi mortgage;
(520) 349-9090

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Chuck Carstensen

RE/MAX Results - Elk River, MN

Minnesota/Wisconsin Real Estate Expert

I think they will be down again next week too. Definately will be time to lock in a rate.

Mar 21, 2009 04:19 PM

William J. Archambault, Jr.

The Real Estate Investment Institute - Houston, TX

Mike,

"I'm no youngster, and I came along in '48." I go back to 48 also, but in the morning when I call my parents I'll feel like a kid!

We can't tell the consumers often enough that they should buy now! 4% is as artificially low as it is wonderful, but inflation is coming like nothing any American ever saw this side of our Southern boarder!

(I wounder if we could get a deal from Mexico for those stamp they used to make one peso note 1,000 peso notes? I'll bet they stil have them. Shouldn't one third world country help another?)

Bill

Mar 21, 2009 04:49 PM

Debe Maxwell, CRS

Savvy + Company (704) 491-3310 - Charlotte, NC

The RIGHT CHARLOTTE REALTOR!

I'm staying tuned, Mike! I cannot believe that it's been that long! And, hey, we're all living through a very different time and just have to stay positive and keep doing what we can to accomodate our clients in an incredibly different economic environment. There's nothing that you and I can do about it--but, we can learn to be flexible and positive, right?!

Debe in Charlotte

Mar 21, 2009 04:53 PM

Kate Bourland

Marketing with Kate - Redding, CA

Onlilne Marketing Mobile Marketing

I've heard rumblings that the rates will drop next week too.

Mar 21, 2009 06:08 PM

Mike Jones

SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ

Mike Jones NMLS 223495

Kate,

Thanks for stopping by; your smile always makes my day!

Debe,

Flexible and positive is the name of the game!

Bill,

I believe you're right about the coming inflationary freight train!

Chuck,

We'll see! Thanks for commenting.

Ron,

Thanks for being the first to comment, and good luck with that buyer!

Mike in Tucson

Mar 21, 2009 08:15 PM

Kate Kate

San Diego, CA

I stand behind this guarantee 100%.

Rates will ALWAYS

Go up
Go down
Stay the same

And what a smartie your client was to lock in! kate :)

PS 4.7% for a 30 year fixed rate mortgage? Speechless

PPS Yes, yesterday WAS a great day, thanks. Yours will be today too.

Mar 21, 2009 11:32 PM

Gabrielle Kamahele Rhind

KGC Properties LLC, Tucson Property Management & Real Estate - Tucson, AZ

Broker/Owner

GOOD MORNING MIKE! No junk and 60% LTV! You are a hero!! How are the rates for lots and construction loans? -- Gab

Mar 22, 2009 12:05 AM

Cheryl Johnson

Highland Park, CA

However, I would suppose excellent credit is required??

One problem we're seeing is that some of our clients managed to get their credit rating messed up over the last year or so (credit card companies reduce limits for no good reason, blah blah blah, you know the story.) :-)

Mar 22, 2009 12:06 AM

Don Rogers

Keller Williams Realty Chesterfield - O'Fallon, MO

Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes

It is getting to be a real adventure in real estate and the mortgage business. I would just like to see some consumer confidence.

Mar 22, 2009 12:48 AM

Carol Smith

Casmi Photography - Mebane, NC

Good info, Mike! I'm sure we will all be watching the market this week. SO much going on in our world.

Mar 22, 2009 01:25 AM

Matt Listro

National Credit Fixers - Matt Listro - Vernon, CT

Your Credit Repair Expert

Hi Mike: I watched that rate reversal Thursday and Friday. We got a very nice drop Thursday on the news of the Fed $ 1.2 Trillion injection then they popped right back up Friday. A follow through this weekwill be a vote of confidence in the Fed and the future of the economy.

Mar 22, 2009 03:13 AM

Terry & Bonnie Westbrook

Westbrook Realty Broker-Owner - Grand Rapids, MI

Westbrook Realty - Grand Rapids Forest Hills MI Re

With low rated and the first time buyer credit now seems to be the time to buy.

Mar 22, 2009 05:12 AM

Susie Blackmon

Ocala, FL

Ocala, Horses, Western Wear, Horse Farms, Marketing

Take away from the RE Tech South conference in ATL ... instead of the normal 'realtor mantra' of "It's a Buyer's Market" .... It's a Smart Money Market.

Mar 22, 2009 06:31 AM

Ann Heitland

Retired from RE/MAX Peak Properties - Flagstaff, AZ

Retired from Flagstaff Real Estate Sales

Mike -- you're a hero. At below 5%, another 10th of a point cannot matter when avoiding the risk of rates going higher --- with the Fed poring money into the economy, rates cannot stay at this level for long.

Mar 22, 2009 08:24 AM

Mike Jones

SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ

Mike Jones NMLS 223495

Ann,

I'm looking forward to seeing what the bond market does tomorrow morning; thanks for stopping by.

Susie,

I like that! "Smart Money Market."

Terry,

Seems? LOL

Matt,

It's good to see you! Thanks for commenting.

Carol,

We do live in interesting times!

Don,

Me too! :)

CJ,

You're right about the credit scores; this couple was over 800.

Gabrielle,

Lots and construction loans are going begging, I'm afraid. 7% and higher.

Kate,

It's good to see you; that's a sure bet!

Mike in Tucson

Mar 22, 2009 12:36 PM

Kevin Robinson

Twin Falls, ID

Fractional Developer

Nice low rates. Very low home prices. Lots of homes sitting on the market.

Mar 23, 2009 01:07 AM

Chip Jefferson

Gibbs Realty and Auction Company - Columbia, SC

Its a great time to be looking at buying.Even I am looking at doing a new home with the rates as low as they are.

Mar 23, 2009 01:34 AM

Mike Jones

SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ

Mike Jones NMLS 223495

Laura,

You go, girl! Buy a house!

Kevin,

Yes they are; the stock market's up significantly this morning, but bonds were unchanged early. It's going to be an interesting week for sure!

Mike in Tucson

Mar 23, 2009 02:25 AM

Ann Heitland

Retired from RE/MAX Peak Properties - Flagstaff, AZ

Retired from Flagstaff Real Estate Sales

And so, which are you?

Mar 23, 2009 12:48 PM

Mike Jones

SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ

Mike Jones NMLS 223495

Ann,

I just locked the father of an out-of-state Active Rain Loan Officer at 4.49%, fixed 30 years, with one point origination and .0023 discount. No PPP, no junk fees. If he keeps making the dollar payment he's presently making, the new loan at 4.49% will be retired in nine years and eight months.

I'm no goat!

Mike in Tucson

Mar 23, 2009 12:56 PM