Rates - How low can you go?

just a few months ago, 7/1 arms were 3.3%. now what is your point????

oh ye, you're an idiot.

tisk tisk, what makes you so angry ab? I hadn't seen 3.3% otherwise I would have commented. I think someone woke up on the grumpy side of the bed this morning.

juicy, to pat yourself on the back when so clueless is so...you

and i'm not in the cheeriest of moods, more about the tragedy in japan than you

ab...JM is not an idiot, my misinformed commenter. You obviously are of the ignorant variety. JM is one of the most influential commenters on these boards as am I. You'll notice that when he posts, as do I, the bears get in an uproar and throw spin everywhere to try and deflect the truth. We hit hard, fast and often and the bears such as yourself are knocked through the ropes. So be careful you may be on your back soon. have a great day!

Wbottom, mama said knock you out!

my forecast.
1 - interest go a little lower and prices stay the same or lower.
2 - interest rates go up and prices come down.

any 1/2 moron knows that jumping on a property when the interest rate falls is a mistake. even if you have a place in mind, it typically takes 3 weeks for a fully executed contract and you can't lock before then.

so let the idiots stevie juicy rise to the heavens above and find all the moron idiots out there willing to pay $1M for a studio because the interest rate went down 1/4 point.... amen

Wtushy!

Wbottom, sorry, but when are you "cheery"? You get into these run-ins so often...

Juice, I know you're a fan of the ARMs, but I think it's a pretty bad time to be looking at them, especially when 15 and 30 year fixed rates are still quite low. Impossible to predict with any certainty where rates will be in 5-7 years, but I have a hard time seeing them staying this low that long. The only exception is if you are dead set on selling before your rate lock is up.

I think JM’s point is that the .TNX, the yield on the 10 year t-bill and the best barometer for mortgages, is down another 2.5% today, and nearly 6% for the past five days. While still significantly higher than November, it's plausible that they could be back in the September to November range in a short time. Rates, at least for the moment, would appear to be headed down. However, unless you’re a professional trader, figure out your finances, and stick to a plan. Know when it makes sense to refinance or what you need to happen for you to afford a specific piece of property. Everything is just hot air. You’ll drive yourself crazy trying to time the market. Very few people, if anybody, can pick the bottom of the market. Rates are excellent now. If you’re interested in real estate, you’re in a favorable interest rate environment. As for NYC real estate, it looks like it has definitely picked up, so you’ll probably be getting less for your money in the spring of 2011 than you did in the spring of 2010. Who knows what 2012 will bring. One can always wait and run the risk of doing nothing, or one can seize the day and get in the game.

no runin here thanks--just a few guffaws from ignorant me (again) over the hilarious first words from our esteemed OP:

"7/1 ARM down to 4.0%."

then to that a decline is rates such as "this" will be good for NYRE prices....that had me choking

and then any who disagree with steviepompoms and juicy are misinformed ingnorants..comedy central

Wbottom...why didn't you buy during the time period of 10/1/2008 through 4/30/2009?

SteveF, I think he answers to Wtushy.

ok Wtushy...why didn't you buy during the time period of 10/1/2008 through 4/30/2009?

Anyone that doesn't think prices and interest rates are set to rise is being foolish.

"Manufacturers in the New York region said business improved in early March to the best level in nine months, but they also reported that they were grappling with higher prices, according to a report released Tuesday."

Their prices are rising, which will spark inflation, which will cause money tightening, which will cause that bargain arm to become your worst nightmare.

Were you not paying attention to the housing bust? Seriously?

Full NY Manufacturing report:

http://www.marketwatch.com/story/manufacturing-at-nine-month-high-in-new-york-2011-03-15?siteid=yhoof

steviepompoms...i went to contract selling in 8/07, thanks, having bought/sold several properties since 94...07 sale was part prudence/part luck....not buying, renting instead, since, is all about prudence....NYRE has been the worst performer by far of all potential/actual components of my portfolio since 07...

so the short answer is "cuz i aint an idiot"

http://www.bloomberg.com/news/2011-03-14/profit-margins-at-18-year-high-signal-bigger-s-p-500-dividends.html

maybe that 9% increase in profit margins won't materialize this year.

"any 1/2 moron knows that jumping on a property when the interest rate falls is a mistake. even if you have a place in mind, it typically takes 3 weeks for a fully executed contract and you can't lock before then."

ok ab, who is the moron? Jumping on property when the interest rate falls? Who said anything about making a buy decision on an interest rate move? If you are buying, a half point rate swing should not make a difference in the decision. If it does, you are buying more house than you can afford. You strike me as very young and inexperienced ab, let me know if you need more help understanding simple concepts. I can be very generous with my time if.....you ask nicely.

"Juice, I know you're a fan of the ARMs, but I think it's a pretty bad time to be looking at them, especially when 15 and 30 year fixed rates are still quite low. Impossible to predict with any certainty where rates will be in 5-7 years, but I have a hard time seeing them staying this low that long. The only exception is if you are dead set on selling before your rate lock is up."

bjw, I understand but here is why it makes sense for me. I look at it a little differently because 1) I can afford to gamble a little 2) if I am disciplined in paying off principal over the next 7 years (which I am) the rate will reset on a much lower principal balance 3) the spread between jumbo 30 and 7/1 ARM is significant enough to take the risk 4) my bank is great and every year (which is why I missed the 3.3%, I wasn't looking) I can pay $500 to modify my loan to the current 7/1 rate. I get a fresh 7 years without changing the number of years the loan amortizes over. 5) the most my rate can go up is 2% in first year of reset so my max for year 8 is 6%. 6) 7 years is a long time for me!

Wbottom, if you bought a current 500k condo studio in Jan 2009 for the then going rate panic selling of 425k and you put down 85k then you are up 88.2% on your 85k down payment and up 75k overall. I highly, highly doubt you are up anything near those numbers on your downpayment money which is probably just sitting in your savings account.....All the while your wife b-tches that prices are going up and we're still sitting here renting like idiots hon!...lol

ohh and if u did buy some stocks then I forgot to mention the bald patches you now have from equity investing stress......"aaaahhh!! I can't watch the ticker anymore!!!!!"

Juicy brains... " Just as rents are going up owning is becoming less expensive."

I guess reading your own words is too difficult. the statement above says, "BUY NOW OR BE PRICED OUT FOREVER". so why don't you go buy the $2M property that is worth $1.5 just so you can get your great ARM rate..

steviepompoms, condostudios at the 425k pricepoint have done shit off the bottom. your numbers, based on that alone, are fantasy. then there are the negative carry and transaction cost factors, which you choose to ignore.

my family loves the freshly renovated 3 bdrm/3 bath we rent, thanks, as well as our investment portfolio and CT house---nobody b-tchin in my household--and we can buy well beyond what we rent anytime we feel so disposed---all very relaxing for us

and to have banked proceeds of years of owning various properties in NY prior to 2007 sleeps me like a baby

you, youre chasing that dream, and it's so over---dream on

and i watch tickers all day for a very nice living, thanks again--no stress there for me

you, on the other hand, with your obsessive defensiveness about your penny ante play in real estate, seem to be the one with stress issues--you should step up to a decent place to live lest your "hon" loses patience with you

ab, I already have a place and my fixed cost goes down with improvement in rates. Ownership cost will go further down (in comparison with renting) as rents increase. Have you been following along ab? My elbow is sore from patting myself on the back while simultaneously spanking your behind.

My loan is under 400k. I have a 780 credit score. HOW LOW CAN I GO THIS WEEK, NEXT WEEK? I'm locking in a rate soon..... please advise!

It depends on what loan program, property type, loan to value, etc. sunny.hong@bankofamerica.com

30 Year fixed. 75% LTV. Highest credit score on a Jumbo around 900K. Fully owner occupied Condo around Madison Park. What kind of rate can I get??

NBA - similar situation - was quoted 5.25%

NBA call me:

Jim McPartland
212.805.1131
James.mcpartland@wellsfargo.com
[url=https://www.wfhm.com/loans/james-mcpartland/index.page]Go to my website[/url]

what are the benefits of a 15 year fixed loan compared to a 30 year fixed?? asides the higher payment monthly wouldnt it cost less to pay off your mortgage half the time?

Less life interest on 15yr vs more peroidic prepayment optionality in 30yr

thanks...