Mortgage Rates Remain Low

In an article from CNBC (http://www.cnbc.com//id/30248657), the topic is lower mortgage rates and how low can they go. The article describes how mortgage rates are over a percentage lower than they were this time last year.

And with these lower rates come with some very small shimmers of hope for the housing market. Home sales are a bit up as well as applications for refinances. This is all good news.

But then the "about face" happens.

As soon as someone is talking about the state of the economy and how there are "glimmers of hope", the speaker at the time has to recant and say something like "But we sill have a long way to go" or "the road is long and tough" or "we are still in a mess".

Listen to President Obama's speech from the other day. Every time he said something hopeful, he just about took it back in the very next sentence. It was like a conversational yo-yo.

We're doing good, but not real good. There is hope, but don't hold your breath. We see some good signs on the road to economic recovery, but the road is another 10,000 miles long.

I understand how as a good leader, the President is thinking. He wants to give the citizens hope but at the same time not mislead us into thinking that we are doing good.

I guess the only good thing is that now there is some positive news about the economy where as before it was all gloom & doom. I guess that is a step up.

I will believe we are recovering when the job numbers are better and home prices start to rise. People cannot buy anything without income. And people should be able to sell their homes with out taking a beating. Even if they just broke even and at least get back what they paid for the house, we would be doing a lot better.

Getting back to the CNBC article, how about this quote from Rick Sharga, Senior VP from Realty Track:

"Mortgage rates are at an all-time low but you have to almost be King Midas to qualify for the loan," "You need a nearly perfect credit score and job history and a significant downpayment to qualify," he said. "That wipes out a huge portion of the buying population."

Well that is not completely true, but he is on the right track. Lending guidelines have toughened for sure. But it is still a good time to buy or refinance with the rates being so low.

What is stopping most people from buying from buying a house or a getting refinanced is the appraised value of the house that they are currently living in. They either can't sell the house because they owe more than what they can sell the house for or they can't refinance because there isn't any lender who will touch them now that they owe more than the house will now appraise for.

Want a glimmer of hope?

Get home prices back up. And I think we would be on the fast road to recovery.

And I'm not going to counter what I just said.


If you have any comments on this article, I would love to hear what you have to say!

Feel free to comment below. Thanks for reading!

Dan TenchallGreat Lakes Mortgage Funding

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