Mortgage Rates Remain Unchanged

[samantha83]

Hi,

There were no changes in the average 30-year FRM and the 5/1 ARM rates since last week, which continued at 6.27% and 6.03% respectively. The rates for the former are the lowest recorded so far in 2007.

With defaults in sub prime mortgages still continuing to escalate, certain stringent measures have been adopted to prevent the effect from spreading to better quality loans and to the broader mortgage market. Loans for which credit standards have been made more rigid include stated-income loans and no-income verification loans.

The problems in the sub prime market could have been worse had it been compounded by a weak economy. This fortunately is not the case. Though there are areas of low growth, it has been compensated by development in other sectors.

The fact that 10-year Treasury yields went up by nearly eight basis points will find an echo in the movement of fixed rate mortgages in the coming week.

Cheers
Rob Thomos
robthomos19@yahoo.com
[url = http://www.mortgages-expo.com/mortgage-brokers-state.html ] Mortgage Loan Expo [/url]

[Real Estate Ron]

Hi,

There were no changes in the average 30-year FRM and the 5/1 ARM rates since last week, which continued at 6.27% and 6.03% respectively. The rates for the former are the lowest recorded so far in 2007.

With defaults in sub prime mortgages still continuing to escalate, certain stringent measures have been adopted to prevent the effect from spreading to better quality loans and to the broader mortgage market. Loans for which credit standards have been made more rigid include stated-income loans and no-income verification loans.

The problems in the sub prime market could have been worse had it been compounded by a weak economy. This fortunately is not the case. Though there are areas of low growth, it has been compensated by development in other sectors.

The fact that 10-year Treasury yields went up by nearly eight basis points will find an echo in the movement of fixed rate mortgages in the coming week.

Cheers
Rob Thomos
robthomos19@yahoo.com
[url = http://www.mortgages-expo.com/mortgage-brokers-state.html ] Mortgage Loan Expo [/url]

This is only the beginning. The sub prime market "WILL" get worse. It's only a matter of time. There are many millions of adjustable sub prime loans out there that have started resetting themselves since January 2007 and each month for the next 2 to 3 years many more millions of new loans will be resetting themselves causing a huge influx of foreclosures and more sub prime mortgage companies to go out of business. It's nice to see this happening because there will be a correction in the real estate market on a national scale from all the idiot brokers out there who have been overpricing properties within the last 7 to 10 years. It's the real estate broker's and the mortgage broker's fault for all the high real estate prices and for all the foreclosures. The next 3 years will be brutal. The entire real estate and mortgage market and all the idiots who work in these 2 industries are in for a rude awakening. Ha ha ha ha ha.

[shayne54]

There is word going round with my Conforming lenders that conforming guidelines are getting ready to tighten up as well. I have heard that sometime in June the minimum credit score for 100% financing through FNMA is going to be 620. Mortgage Insurers will no longer insure loans > 95% LTV with a score < 575.

[bluemc]

Interest rate is the key. Higher rate will put more downward pressure on mortgage and housing markets. On the other hand, lower interest rate could help turnaround.

[avonreal]

This is only the beginning. The sub prime market "WILL" get worse. It's only a matter of time.

i hope you're wrong, many young people trying to get on the property ladder rely on these sort of mortgages..