Mortgage Meltdown ???
August 8, 2007
As I drive to work, I listen to KNX or KUSC radio. The classical music on KUSC keeps me out of the mundane, nitty, gritty that sometimes rules the work-a-day world. KNX keeps me up-to-date on current issues and news items. When the stories are repeated too often, I go back to the music. These 2 stations shape my driving environment.
The past several days, KNX has been focused on the "mortgage meltdown". With the announcement of the bankruptcy filing of a major lender, they have interviewed a number of financial professionals. They also made the startling anouncement that Wells Fargo had increased the interest rate on their jumbo loans to 8%. This startled me because for such a long while, interest rates have been below 7%. KNX was looking to interview other lenders to see if they would also raise their rates. In fact, rates are rising, but I have not heard that other institutions have gone to an 8% rate.
I checked this morning with our affiliated lender, Financial 2000 and here are the current rates that they are offering:
Jumbo loans=$417,001 or greater
30 year fixed = 6.875% at par
15 year fuxed = 6.375% at par
Conforming loans = $417,000 or less
30 year fixed = 6.375% at par
15 year fixed = 5.875% at par
The mortgage market is very volatile these days and no one can assure me that these rates will be the same tomorrow. Investors who put up the funds for home loans are nervous, but money is available to the credit worthy home buyer.
As I drive to work, I listen to KNX or KUSC radio. The classical music on KUSC keeps me out of the mundane, nitty, gritty that sometimes rules the work-a-day world. KNX keeps me up-to-date on current issues and news items. When the stories are repeated too often, I go back to the music. These 2 stations shape my driving environment.
The past several days, KNX has been focused on the "mortgage meltdown". With the announcement of the bankruptcy filing of a major lender, they have interviewed a number of financial professionals. They also made the startling anouncement that Wells Fargo had increased the interest rate on their jumbo loans to 8%. This startled me because for such a long while, interest rates have been below 7%. KNX was looking to interview other lenders to see if they would also raise their rates. In fact, rates are rising, but I have not heard that other institutions have gone to an 8% rate.
I checked this morning with our affiliated lender, Financial 2000 and here are the current rates that they are offering:
Jumbo loans=$417,001 or greater
30 year fixed = 6.875% at par
15 year fuxed = 6.375% at par
Conforming loans = $417,000 or less
30 year fixed = 6.375% at par
15 year fixed = 5.875% at par
The mortgage market is very volatile these days and no one can assure me that these rates will be the same tomorrow. Investors who put up the funds for home loans are nervous, but money is available to the credit worthy home buyer.
posted by shirley harry at 9:17 AM
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