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NEW -> Contingent Buyer Assistance Program
lendingmaestro - With the ten year under 4%, what are 30 yr mortgage rates now? Are ARMS still being indexed to LIBOR? Are the falling yields on the ten year having any effect on mortgage rates?
 
<p>Yes rates are coming down but not by as much as you'd think. For every drop in market rates, mortgage rates decrease but by a smaller margin. 30 year fixed rates FOR CONFORMING LOANS are now below 6% for full doc.</p>

<p>ARMS are still tied to LIBOR, some MTA and COSI/COFI/CODI but those four are generally reserved for neg ams.</p>
 
<a href="http://www.ft.com/cms/s/0/5cd7d604-9c3a-11dc-bcd8-0000779fd2ac.html">Mmmm.... Liquidity</a>.


<a href="http://www.ft.com/cms/s/0/93d95d0e-9b7b-11dc-8aad-0000779fd2ac.html">


Time to look at the past</a>.





<a href="http://www.ft.com/cms/s/0/2e9f9670-9c1f-11dc-bcd8-0000779fd2ac.html">HSBC caught the SIV</a>.
 
<p>Am I wrong in thinking that people with lots of cash are betting that the current problems will all be resolved with in the next 18 months and are buying 2 yr Treasuries in such large numbers that the yields are dropping as prices rise?</p>

<p> </p>
 
SAN FRANCISCO (MarketWatch) -- JPMorgan Chase plans to cut about 100 subprime mortgage jobs amid falling housing prices and tighter lending standards, Reuters reported Monday. The cuts will affect JPMorgan's subprime retail operations center in Ontario, Calif. and is expected to go into effect on Dec. 15, Reuters said. About 40 percent of JPMorgan's 2006 subprime originations would not be approved under today's standards, the wire service reported, citing a statement from the bank.
 
Nude - Respectfully, I think that is a wrong assumption. I think treasury rates, including 2 yr, are indicative of institutional money selling more risky assets such as equities and buying the instrument most recognized as safe. 2 yr, 6 month, and three month t-notes are considered cash to institutional investors and it is where they park capital when they don't want to invest in anything else.
 
6.0% with 0.0074% in discount fee points....$148 bucks


5.875% with .384% in discount fee......$768 bucks


5.75% with .903% in discount fee....$1,806





If I keep all parameters the same except increase the loan to 500k and appraised value to 625k, the rate is 7.5% w/ no points. Even if I switch to primary residence the rate is 7.125% w/no points.......ewww!!!
 
<a href="http://dailypilot.com/articles/2007/11/26/business/dpt-bizwatch26.txt">Interesting story in the Daily Pilot</a>...they interviewed a UCI business prof. Two of the most intriguing points made:





<strong>"Does the housing market play a part in the downturn? </strong>


No question about it. The housing market basically was the primary stimulus of consumption since about 2002. Basically, people were using their homes like ATM machines, taking equity out and refinancing and spending that money. That was a tremendous stimulant to growth, just as the tech bubble was a stimulant in the late 1990s. Now, that stimulus is no longer there, and that’s causing lots of issues."





<strong>Are there any positive signs you see in the economic forecast? </strong>


To be honest, no. We’re in a difficult situation here."





Ahh, what does he know. No problems here.
 
<p><a href="http://news.yahoo.com/s/ap/20071127/ap_on_bi_ge/citigroup_abu_dhabi;_ylt=AphVDJkfKciVTwSQkC8PRGWyBhIF">Citi sells stake to Abu Dhabi fund</a></p>

<p>NEW YORK - Citigroup said late Monday that the Abu Dhabi Investment Authority will invest $7.5 billion in the nation's largest bank, offering needed capital to offset big losses from mortgages and other investments.</p>

<p>The cash from the sovereign investment fund of the Gulf Arab state, which has been a beneficiary of this year's surge in oil prices, will be convertible into no more than 4.9 percent of Citigroup Inc.'s equity. Citigroup characterized the investment as passive and said the fund will not be able to name any board members to the bank.</p>
 
I saw Navarro's quote from the Daily Pilot last night on Calculated Risk's piece pulled from IHB (by the way, congratulations IR for catching Tanta's attention! Too bad she didn't give you more credit.)





Navarro makes me mad. He is a bigshot econ prof at Merage (I got my MBA there a few years ago) and all I can say is, where the hell was he a coupla years ago when all the rest of us saw this coming as loud and large as a freight train? So big whoop, he's calling it now. His grasp of the obvious is astounding. Harumph. Not impressed.
 
<p>The beat goes on. . .the beat goes on.</p>

<p>"Prices of existing U.S. single-family homes in the third quarter slumped 4.5 percent from a year earlier, matching a record decline from the previous period as the housing downturn deepened, according to a national home price index on Tuesday. </p>

<p class="textBodyBlack">The S&P/Case-Shiller National Home Price Index fell 1.7 percent from June, marking the largest quarterly decline in the index's 21-year history, S&P said in a statement. </p>

<p class="textBodyBlack">'Consistent with prior 2007 reports, there is no real positive news in today's data,' Robert Shiller, chief economist at MacroMarkets and creator of the indexes, said in the statement. All 20 metropolitan areas tracked by the indexes showed price drops or slower price appreciation, he said."</p>

<p><a href="http://www.cnbc.com/id/21990115">www.cnbc.com/id/21990115</a></p>
 
<a href="http://www.ocrealestateblog.com/blog/_archives/2007/11/26/3377158.html">Vince Bindi on his RE blog</a>...WOW...





"Our charts of Price per Square foot for both detached SFR's and Condo's, has shown that the peak in home pricing occurred in May of last year at about the $407/SqFt level for detached homes. Prices have been slowly decreasing since that time to a level of $356/SqFt today for detached single family homes. <strong>This represents a decrease of 12.5%</strong>, and since closed sales prices are always a lagging indicator, and given the recent sales that I have seen in certain areas, I<strong> predict this number will show prices having already fallen to a level of 15% to 20% for certain areas and product types.</strong>"





(He tracks South County, not all of OC, but I believe Irvine is included)
 
<p>For the Case_schiller graphs for LA and other cities, you can see them here</p>

<p><a href="http://www.macromarkets.com/csi_housing/MSA/los_angeles.asp">http://www.macromarkets.com/csi_housing/MSA/los_angeles.asp</a></p>
 
<p>Homeowners' big question: How low will prices go?</p>

<p>http://www.latimes.com/business/la-fi-howlow27nov27,0,5862638.story?coll=la-home-center</p>
 
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