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news
Joined: 14 Jul 2007 Posts: 0 Location: Greater Boston
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balor123
Joined: 08 Mar 2008 Posts: 1204
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Posted: Tue Dec 29, 2009 5:03 pm GMT Post subject: |
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I don't know if you all noticed but there was a huge jump in the 10-yr treasury and by extension the 30-yr mortgage rate in the last week. The 10-yr is now 3.85% and the 30-yr is 4.69%. The 30-yr mortgage rate is 5.37%. The Fed only has .68% worth of room to force mortgage rates down. I wonder what happens when the 30-yr mortgage is lower than the 30-yr treasury but I suspect the bleeding will rapidly accelerate. In any case, I still maintain that the MA housing market will not dictate national policy.
I would love to see how different states will be affected by rising interest rates though. I expect that areas where FTHB recent purchases have lower downpayments, tax credits are more significant, and buyers have higher monthly payments relative to income (in other words, debt dependent areas) will be most affected. Is Boston one of those places?
Another concern is the jumbo loan limit. Wasn't increase only temporary and when will it disappear? |
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admin Site Admin
Joined: 14 Jul 2005 Posts: 1826 Location: Greater Boston
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Posted: Thu Dec 31, 2009 3:04 pm GMT Post subject: |
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The Fed is also supposedly going to stop purchasing mortgage backed securities soon. So that 0.68% spread may itself be going up too. Of course, who knows if they actually will stop in March.
I too thought that the jumbo limit increase was temporary. I seem to recall Frank pushing to have it made permanent. I could be wrong, though.
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