How low can we go? 30 yr fixed at 3.75% with no fees...

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Soylent Green Is People said:
Without paying a fee, it's difficult to get live MBS prices. Try mortgagenewsdaily.com. They have very sharp data that's free. If you want the live stuff though it's pretty spendy.

Greenlight's website posts rates, but you're better off with Provident or Amerisave given the customer service ratings. That 3.0% rate is a 10 year fixed not 30.
http://www.greenlightloans.com/greenlight/web2/OurRates.html
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Yeah, the MBS bond rate is the "wholesale" rate that no one can get, I'm more interested in tracking the movement of the rates on a daily basis. 
 
USCTrojanCPA said:
irvinehomeowner said:
3.0% for 10-year seems high to me... especially if you can go sub-3% with a 15 or 20.
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It is high for a 10-year.  You should be able to get a 15-year around 2.75-2.875%.
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Is the 10 year rate higher due to it not being as widely sought out as say, the 15 year?
 
Right on the nose. No money in 10 year loans which is why we may see more attractive ARM loans coming. Lenders would rather gamble on a 2.75% ARM that could go higher than fund a market rate 2.625% loan that's fixed. 

We are at the bottom now. I've long held that we aren't likely to see a push through below 3.5% without substantial cost because it's not a loan that makes enough money to support the banking industry. We'll know soon enough if that's a viewpoint in need of changing. Europe isn't going to heal overnight so there's plenty of time to see these lower rates flop around at these levels.

My .02c

Soylent Green Is People
 
SoCal78 said:
USCTrojanCPA said:
irvinehomeowner said:
3.0% for 10-year seems high to me... especially if you can go sub-3% with a 15 or 20.
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It is high for a 10-year.  You should be able to get a 15-year around 2.75-2.875%.
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Is the 10 year rate higher due to it not being as widely sought out as say, the 15 year?
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The 10-year rate should be a little bit lower than a 15-year rate.  The lender that is offering that 10-year rate is on the high side.
 
Soylent Green Is People said:
Right on the nose. No money in 10 year loans which is why we may see more attractive ARM loans coming. Lenders would rather gamble on a 2.75% ARM that could go higher than fund a market rate 2.625% loan that's fixed. 

We are at the bottom now. I've long held that we aren't likely to see a push through below 3.5% without substantial cost because it's not a loan that makes enough money to support the banking industry. We'll know soon enough if that's a viewpoint in need of changing. Europe isn't going to heal overnight so there's plenty of time to see these lower rates flop around at these levels.

My .02c

Soylent Green Is People
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I'm not shocked by many things anymore, but I would be surprised if the 30-year fixed did get below 3-3.25%.  Rates are dropping everywhere...I got a 2.49% 5-year used private party car loan from Penfed last year and I thought that was as low as it was going to get....nope, they dropped that rate down to 1.99% last month.
 
USCTrojanCPA said:
I got a 2.49% 5-year used private party car loan from Penfed last year and I thought that was as low as it was going to get....nope, they dropped that rate down to 1.99% last month.
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I should look into that... do they refi car loans?
 
irvinehomeowner said:
USCTrojanCPA said:
I got a 2.49% 5-year used private party car loan from Penfed last year and I thought that was as low as it was going to get....nope, they dropped that rate down to 1.99% last month.
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I should look into that... do they refi car loans?
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Yes they do, just not existing penfed car loans.  >:(  :'(  :-\
 
USCTrojanCPA said:
irvinehomeowner said:
USCTrojanCPA said:
I got a 2.49% 5-year used private party car loan from Penfed last year and I thought that was as low as it was going to get....nope, they dropped that rate down to 1.99% last month.
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I should look into that... do they refi car loans?
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Yes they do, just not existing penfed car loans.  >:(  :'(  :-\
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OK, Who do I go to for doing this Penfed car loan refi?
 
davenlei said:
USCTrojanCPA said:
irvinehomeowner said:
USCTrojanCPA said:
I got a 2.49% 5-year used private party car loan from Penfed last year and I thought that was as low as it was going to get....nope, they dropped that rate down to 1.99% last month.
Click to expand...
I should look into that... do they refi car loans?
Click to expand...
Yes they do, just not existing penfed car loans.  >:(  :'(  :-\
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OK, Who do I go to for doing this Penfed car loan refi?
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Nevermind. I went to their site.
 
Provident had a 30-year fixed for 3.375% at 0pts for a few days the past week (up to 3.375% at 1/2pt today).  They only lend conforming loans ($417k and under). 
 
homer_simpson said:
Any news on the 5/1 or 7/1 ARM with no fees?
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The 5/1 ARM hit 2.375% with a small credit and 7/1 hit 2.50% with a small credit for few days recently.  Now we are back up to 2.50-2.625% for the 5/1 ARM and 2.75% for the 7/1 ARM (damn that operation twist).  I think QE3, if it includes MBS purchases, might push the 30-year fixed close to 3% and maybe the ARMs down.
 
USCTrojanCPA said:
I think QE3, if it includes MBS purchases, might push the 30-year fixed close to 3% and maybe the ARMs down.
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It's the end of the world!!!

Should really try to buy something this year before rates go back up.
 
Didn't someone say that below a certain amount for 30 yr fixed, lender is not making money, so they won't lend?  Overhead is too high and mortgage rate too low.
 
That was me.

Note that 3.25 has been with fees (conventional) even with a 1.6 10YT and MBS prices at all time highs. Some lenders are offering 3.25 fee free on an FHA loan simply because the loan has a government guarantee backing it. We're going to see the Freddie Mac Weekly Rate Survey hit 3.5x soon, but the costs to get that rate will likely go from. 75 to 1.0x.

Lenders capacity to process and close loans is stretching from 45-60 days out to 90-120 in many cases BTW.
 
I wanted to know your opinions about the 30 yr fixed going down to 3.25% or even lower. 
Do you think that can happen? 
If lenders are already at the break even pt, it doesn't seem like we can get lower than now.  We may stay at this level for a long time though.
 
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