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Before 5:00pm today I got many emails from lenders with a "mid-day price change" after the feds announced the lowering of the Prime rate. Here is what countrywide sent :
Mid Day Rate change!
This is from Citibank:
New York – Citibank said today it has lowered its base lending rate to 7.75% from 8.25%, effective today, Tuesday, September 18, 2007.
The rest will follow.
In the past few days I have also received many notices from conforming lenders stating they are loosing up on there requirements again. Things like 40 yr fixed are back, stated and no docs are available again and so forth.
i have seen that TBW is the best for these two....but younever know!
Quote:
Originally Posted by mbmouse
Before 5:00pm today I got many emails from lenders with a "mid-day price change" after the feds announced the lowering of the Prime rate. Here is what countrywide sent :
Mid Day Rate change!
This is from Citibank:
New York – Citibank said today it has lowered its base lending rate to 7.75% from 8.25%, effective today, Tuesday, September 18, 2007.
The rest will follow.
In the past few days I have also received many notices from conforming lenders stating they are loosing up on there requirements again. Things like 40 yr fixed are back, stated and no docs are available again and so forth.
For conforming I use Interfirst and Wamu the most but depending on the program, use Indy Mac and a few others. I don't do FHA but the above have my community and such that will do the 100% or 97% without all the hassles of FHA at basically the same rates.
TB&W- I can never get anything accomplished with them, tried to call 3 times a day for 4 days in a row, never got a call or email back. I know a lot in our company love them but I think they (TB&W) doesn't like working in TN maybe?
Hey, can you do me a favor and DM me the name and number of your AE? I would appreciate it.
So the concensus is rates did go down today? But who knows how long they will last?
Could just be a knee jerk reaction of the banks. But hopefully rates will stay this way or go lower for the near future.
I beleive Greenspan was talking more about the mid-long term with double digit rates. It should be at least a year (probably much longer) before we see any major fluctuation in rates.
Cutting the fed funds and the discount ultimately will be bad for mortgage interest rates.
Cutting the rates is designed to stimulate the economy /equities markets.
Inflationary pressure will force the yields on 10 years to skyrocket.
However, there probably will be a slight short term depression in rates for the time being.
.........
GENERAL RULE OF THUMB FOR MORTGAGE SHOPPING
A downward spiraling stock market causes rates to go down.
A bullish market causes rates to rise.
Cutting the Fed Funds is an artificial way to cause bull market growth. Witness the record Dow Jones surges....
Lowering rates is Counter-intuitive logic, but it results in higher long term rates.
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