I hope so. This action by the Fed was the nuclear option and we don’t even know the extent of how soon this pandemic will peak, let alone decline.
As I said last week, the Fed shot the elephant gun and it bounced off the elephant, twice. The markets are having a similar reaction today. Understand that liquidity is important but the balance sheets of the big banks did not have a liquidity problem. Monetary policy only takes you so far.
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Algos got kicked off by the big trade houses and created panic. Im going to go on record saying this is a calculated drop utilizing the flu virus to reset the market. The market needed a correction but this is being abused and we will see several trillionaires in the near future.
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Purchases to infinity. It will be the only thing that might push rates down. Need to keep real estate going.
They have a spread build into it. Will look it what it is called but mortgage originators/brokers do it. Usually goes as high as 1%. Otherwise why my CU offers 3.375 where as wells fargo is at 4.25. That is a huge margin.
wow, I was checking the site after reading the rate cut, thinking there might be another drop. If anything, my bank actually raised the rate last month. It is still showing 3.625 for 30 year fixed and 3.25 for 20, so plus .25 on 30 year and .125 on 20. This happened last week.
Locked in my 30yr jumbo FHA two weeks ago with 3.0% plus $5k in lender credits, hope it isn’t a bad decision.
Locked in early March a 30yr jumbo at 3.375% with 9k in lender credits.
I feel that in 2008 in our real estate price bottomed out around 2012 along with mortgage rates. Got 3.5% fixed 30 year at that time.
Now I’m thinking it’s worth checking to refi.
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Rates listed on everyone’s websites are still high(relative to when it bottomed out a couple weeks back), I’m just waiting, at some point people will not be able to get through underwriting because they’ll be furloughed not working etc. It’s going to get really ugly and I think I’ll wait, I’d be surprised if it didn’t go down again.
I wonder what’s going to happen with oil, can you imagine what the back up is on the supply side. All these planes not flying(they use a crap ton of fuel) and all the people not driving to work etc. $1.75/gal for regular at Costco in the Denver area. Found one at $1.69
California still getting hosed, crazy
From Gasbuddy
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California- it’s because of our policies that enforce fees on per gallon. We’re paying a environmental fee and a electric vehicle and a special tax fee (I could be wrong on this one but it’s masked into something like that PER GALLON. Those 3 extra fees specific to the state of California alone makes our gasoline more expensive than any other state. But also don’t forget we have the most all electric and hybrids in the state of California alone than ALL OTHER STATES COMBINED. And don’t forget CALIFORNIA GDP is it’s OWN COUNTRY https://en.wikipedia.org/wiki/Comparison_between_U.S._states_and_sovereign_states_by_GDP
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ANNNnnnd crazy cheap mortgages are likely over, for now:
I’m guessing lender standards also get tighter?
Man that is good. Finally taking care of the little guy. Still how about bringing those rates down? Fannie should refuse to buy any mortgages unless they at 3.25 or less.
Fyi seem like appraisals will be on hold as well. Just got a call.
It makes sense, but it doesn’t apply to people who rent or working professionals in big cities since they have jumbo mortgages
Before we do any drastic move on the market, stop the virus and then you can recover. Else we are just wasting money.
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As long as don’t need to jump through hoops to prove it was because of COVID.
What a change of event, I still have messages between my friends and I saying we can wait and you have nothing to lose. Lucky I took the modification, scary part is that they haven’t processed it yet…