KnowYourPro

http://www.mortgagenewsdaily.com/01062010_mbs_purchase_program.asp

Mixed emotions on this. Rates have been stablizied. they have been around 5% for over a year now. Great for home buyers and those that can refinance. Every dollar saved in someone's mortgage payment is a dollar that could be spent, saved, or used to pay down other debt. That is a good thing. Of course this is all theory.

Rich- do you think we have had stability? You know you spend WAY too much time focusing on what the MBS market is doing, and why? So that some jerky can make some money on speculating on speculation? ;)

Being an ex bartender, I am pretty good at riding the fence so here is my "non-take" of the situation.

On one hand, I would be lying if I did not say this whole MBS purchase was not good. It kept rates down and put some nice coin in my pocket enabling me to take care of my family. If pushed to make a stand, all I care about is taking care of my family.

On the other hand, it really ticks me off when I hear about the alarming percentage of people who have been bailed out of their higher rate mortgage that they were struggling with and are still late with their mortgages. To that I would say screw it, lets rates go where they may and use the billions to stimulate the economy/help the country in other ways.

Joe- what if this money and energy was spent on creating sustainable jobs? Energy, security, education, manufacturing, you name it... I think that we can all agree that when the shit hits the fan, the mortgage industry as we know it will not exist. So what then? Everyone that is employed in this industry goes where? It is a worry of mine, and one of the reasons I am no longer counting on mortgages as any sort of income provider. Times may ok now, but in a year? Two? While I agree with your sentiment that you will do what you can to support your family, at some point in the not too distant future, you may just have to find another way. And instead of being able to get employed by a great energy company, or a school system, or even a factory, who knows. All I know is throwing trillions of dollars down the tube only delays the inevitable and adds NOTHING to our sputtering economy for the long term.

mbs has been artificially pumped up by the fed, indeed... will the mortgage market stink after this fed fish fry is over? Only time will tell... as is, the vibe is for rates near 6% for a 30 yr by summer, that sounds about right.

And if housing prices correct even more, people will still be buying houses- Rate should not matter, PRICE should. Not only is the Fed action spurring even more inflationary bullcrap, but it's also propping up housing prices- NOT GOOD. It is delaying the inevitable.

Almost Done, and it is not even the 2nd week of Jan yet.

First day of no more Fed MBS Purchases...so far "SLIGHT PAIN"

I wonder what will happen now. I heard rates worsened about .75% over the last week or two... This has happened before too- during the Fed's buying binge. So, I wonder how much it is all related. Bottom line is, if banks still see mortgages as a profitable business, they will keep rates low. OR, we see a proper price correction and 'rate' will matter less and less.

I heard rates were low as a snake's belly

Rates are pretty low that is for sure, and looking ot keep going lower...

Paul- they dipped last week, right? Still seems to be very roller-coaster like, and that can't be fun to watch.

Just maybe, just maybe, here comes a refi boom!

Yep