The recent Fed rate cuts has spurned a wave of new mortgage applications especially with refi’s. The problem however there are many well qualified applications that are not able to qualify to the stringent guidelines that lenders have now.Lenders have gone from one extreme to another. At one time all you needed was a heartbeat to qualify for a mortgage now.
The most qualified buyers however are finally being reward with the ability to refinance to a lower interest rate. The rate cuts have not had a big impact yet on new home and resale home yet but December is typically a slow month on home sales with the holidays.
It will be interesting to see how home sales pick up after the new year as there are many buyers out there trying to time the market.
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Here over in Europe do we have EURIBOR in many of the EU members (Spain, Germany, France, Italia, ect) country’s. The EURIBOR is also going done, not so fast like your Fed rate, but we can feel that people are more interested to buy now. I hope we are going to get a better 2009 than 2008.
Loans are much more difficult to get than 2 years ago. Even qualified buyers should count on 6 – 8 weeks for approval compared to 3 – 4 weeks normal close time. Conforming rates are in the low 5′s but FHA loans have not followed suit as closely.
Things around my office do seem to be a little busier. It’s hard to tell if it’s just that first of the year enthusiasm or the market doing a little better. I have a bad feeling things are going to be down for a lot longer. Not interest rates or any one thing will help us. Only a combination of economic facts will fix this and I cannot see it happening any time soon. Let’s hope I’m wrong.
I think the loans should have been harder to get all along.
it would have prevented such a wild market swing.
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