Day one? We have over 18 months of deteriorating RE market, which already pushed few states into recession (like California), how come today is the day one?
Today Countrywide published their new matrix of mortgage quotes. Suppose you are a successful doctor with solid income, huge pension account and almost maximum credit score. You want to buy a new primary residence for, say, $800k (which would be very, very modest 3 bedroom home in may area). You are putting 20% down and can show 2 months worth of payments on your checking account. Obviously you document your income, this is a full-doc loan.
What is your rate? It will be 7.9% for 5/25 ARM loan.
Now the real estate game is over, whatever happened before today was just a preparation for what will happen next
August 13, 2007 at 5:42 pm
Close friend of mine heads a mortgage broker division on the East Coast. Recently, he stated that he has NO PRODUCTS for his clients. When I asked what percentage is busines down YOY? He replied, Its’s down about 80%.”
Another friend heads an Auto finance division for a large dealership and looks at 100s of credit application per month. His synopsis, ” I look at 100s of credit apps a month. Bottom Line: Nobody makes any money as far as salary. Some just manage their payments!” Today, banks are looking at 96 month loans for certain auto loan programs
There is no way house prices can remain where they are and there exist no solutions but the long, painful lesson of a declining market.
Some may see this as the end of a bubble. I see it as the officlal death sentence for the Middle Class of America.
August 13, 2007 at 6:11 pm
[...] have just gone psychotic. Why? Because no one wants the risk and thus are pricing them high. Today Countrywide published their new matrix of mortgage quotes. Suppose you are a successful doctor with solid income, huge [...]
August 13, 2007 at 11:53 pm
>>> Some may see this as the end of a bubble. I see it as the official death sentence for the Middle Class of America.
This happened before. Anything can be fixed given enough time
August 14, 2007 at 3:45 am
I may be wrong, but didn’t you miss a 1/2%
“adjustment” for a jumbo loan? Wouldn’t the rate
really be 8.4%