There is one silver lining to a soft economy: lower mortgage rates.
The average rate on a 30-year fixed mortgage in Orange County fell today to the 5% range, brokers said. Rates have trended down from the 5.25% to 5.5% range last month as the U.S. unemployment rate hit 9.5%.
A soft economy means investors buy U.S. Treasuries for their safety, which drags down their yields and indirectly leads to lower fixed mortgage rates.
Consumers in Orange County with good credit today can get a 30-year fixed mortgage as low as 4.875% with 0.625-point fee, said Jeff Lazerson, head of online brokerage Mortgage Grader in Laguna Niguel. That’s for “conforming” loans up to $417,000 that can be sold to Fannie Mae or Freddie Mac — such loans generally have the lowest rates on the market.
“Rates are down because putting lipstick on a pig only works until you take a closer look…it’s still a pig,” Lazerson said. “In other words, the government and the Wall Street gatekeepers have been hyping that the economy is getting better. It’s not getting better. Consumers aren’t spending because they are worried about their jobs, if they haven’t already lost their jobs.”
Jeff Altman, a partner in brokerage WestCal Mortgage Corp. in Orange, said he saw conforming rates today closer to 5.125% with a one-point fee.
More from this blog…
- O.C. mortgage delinquency jumps again
- 125% refinances allowed on troubled mortgages
- Distressed housing inventory down 46% since December
- Banks offered 61% off these foreclosures
- Delinquencies rise on least risky mortgages
- Banks reject toxic-asset plan
- Frenzied bidding on discounted foreclosures
- FDIC seizes Irvine bank
- Is paying off a mortgage the best option?
- These O.C. homes are about to be foreclosed
- Fed trims emergency lending
- Federally insured home loans keep growing
A few weeks ago, when mortgage rate went above 5% for only a couple weeks, I heard some professional analyst moron said that “we will NEVER see rate below 5% again”.
Fannie Mae or Freddie Mac, that scary. Hear about Barney Franks latest idea to destroy the US economy, let alone the rest of the housing market:
Barney Frank: Let’s spend TARP profits before taxpayers can get them
http://www.washingtonexaminer.com/opinion/blogs/beltway-confidential/Barney-Frank–49649362.html
Your tax dollars at work…
“professional analyst moron said that “we will NEVER see rate below 5% again”.”
it was probably a realtor trying to convince a sucker to buy a house, since they can’t use the “buy now or be priced out of the market forever”, they now use a new phrase “interest rates are going up so you better buy now”
by the way, just a couple of months ago, mortgage rates were at 4.50% so I wouldn’t get too excited.
Gee, all people need to worry about is keeping their job now.
This man is bad mouthing the gov’t and obama? How dare he - sounds like a racist to me…
re fin plu 125. soon you will be able to refi with any loss you have-and everyone else will pay for it.
Even the densest consumer has a gut feeling that blowing money on useless cr@p is not a good idea. This economy blows.
Well, unless it’s made by Apple, where by reason and logic go out the window.
A soft economy means investors buy U.S. Treasuries for their safety, which drags down their yields and indirectly leads to lower fixed mortgage rates.
SOFT!!!
Soft is a pillow or a bunny.
This is friggen quicksand
new definition for quicksand at the ocr = “soft”
Better alert funk & wagnal!
I miss the good old times. You know ….Bush’s administration. It’s not a joke.
It was good time for me. I only worried about working hard. The media was at its worse but it was still pretty good for me.
The media is kissing Nobama’s rear like crazy yet it feels horrible nowadays.
Good luck to you, liberal idiots. You deserve the bed that you have made.
Lol! Under WHO’S watch did the Housing Bubble take place again? How about that that “Financial Industry Oversight”? Who’s watch were we on then? Obama has been in office since late January and already the Republepuke’s spin-master’s have the economy as HIS fault! Lol! Convenient ignorance! Wallow in it!
Padilla,
Please stop quoting rate and points…..You should quote total fees if your going to quote a rate as brokers and banks will give a quote without a point, but add garbage fees to make money….Your not helping borrowers by giving free advertising to these clowns mentioned.
Agreed! Quoting a 5% rate with “a one-point fee” doesn’t tell the whole story. BTW, I got a guy 4.75% with one point today…but then I always beat the banks!
“…4.875% with 0.625-point fee…”
______________________________________________________
Is that what the lender will pay me, IF I decide to take a loan out? LOL!
“Rates are down because putting lipstick on a pig only works until you take a closer look…it’s still a pig,” Lazerson said. “In other words, the government and the Wall Street gatekeepers have been hyping that the economy is getting better. It’s not getting better. Consumers aren’t spending because they are worried about their jobs, if they haven’t already lost their jobs.”
Kudos to this gentleman for being honest.
bottommmmmmmm
Money is rushing to MBS’ and Treasuries….rates in the 4’s at zero points as of right now.