Mortgage rates

[Cydkar]

I'll probably stay another year or two to be honest. A lot of people live in more house than they can handle. That's not a problem I have.

I'll use the money I save on golf this summer...there, it's settled.

 

[cybsball20]

I got a good rate (5.125%) at WF a few years back. I'm not married to them but can't complain either. I would certainly shop around if moving or refinancing.

Since I will be upgrading I may look to move this year. I have basically a starter home so even though I wouldn't get as much as I'd like, a similar markdown on a bigger house (based on %) would make up for it. Plus if the rates are low it may be time to pull the trigger.

Is that sound logic?

I've been hesitant to move because I'm at a good rate already.

I'd be a little more patient, especially if you don't NEED the bigger house. With the problems in the subprime industry and the real estate market, the hardest thing to unload is starter houses. It's getting harder and harder for people to get loans with nothing down. I would wait it out a bit, and pay extra on your current house (what you plan to pay on the future) and build more equity, maybe even do some improvements so it will stand out among the 'starter houses' when it's time to sell...

 

[alaskaguy]

Just keep in mind that the market stinks so you may find something at a great price, but make get hosed on your house too... Moving up is nice but generally speaking the longer you can stay in one place the better off you are financially.

The broader market indices may stink, but various sectors have done quite well. In addition, if you are convinced that the market will continue to trend downward, there are a number of mutual funds that short various market indices.

 

[Wesley]

Wells Fargo is conservative and certainly not always the lowest, but not the highest either. I work for WF, although not in first mortgage, and WF is the only AAA rated bank in the country, so there is a premium. Also a reason you see WF not struggling like some other companies right now. Variable rates are still coming down, might not be a good idea to lock in a second until this spring or summer.
30 year rates are based on the bond market, they were down below 5 briefly then shot up within 2 hours, probably more like 5.625% today or so.

Warren Buffet owns a big chunk of Wells Fargo and they have $120B in cash. He can float WF some money so they can get more. Heard interest rates will go no lower unless the floor falls out. Fed overeacted to overseas.

 

[jDub]

Warren Buffet owns a big chunk of Wells Fargo and they have $120B in cash. He can float WF some money so they can get more. Heard interest rates will go no lower unless the floor falls out. Fed overeacted to overseas.

I'm not sure if you're only talking about mortgage interest rates or not, but the Fed is widely expected to cut the Fed Funds rate yet again. I'm not in the mortgage business so I'm unsure if this will impact the mortgage rates given the tight credit environment that banks are dealing with.

 

[josier]

30-yr mortgages are priced off of the 10 year Treasury bond. On Wednesday morning, 10 year treasury yields were off more than .5%, but after a strong stock market rally, 10 year yields rose nearly full point from their lows and by the end of trading were .5% higher than the start. Continued Fed cuts will likely have little to no impact on mortgage rates as Treasury yields already have additional 1.25% assumed in their rates. In other words, the fed would have to lower their interest rate target to 2.25 to equal todays rates. If expectations change about the magnitude of Fed easings, you could see a big rise in actual (not targeted) interest rates. Hope this helps.

 

[ericlambi]

My home equity loan thought is another story, its a floating rate, interest only payment that I really ought to find a place to refinance at a reasonable fixed rate.

If your home equity line is floating and based on Libor or Fed Funds, or the Prime rate, then it should be coming down dramatically in rate. I just closed on my home today and my second line is .85% higher than my first mortage. After it resets for the recent 75bp Bernanke cut it will be .1% higher, and after Bernanke cuts another time or two, it will be lower.