Wednesday, December 3, 2008

Everybody Limbo!

How low can we go?  4.5% mortgage rates?

That’s the breaking story on CNBC, Wall Street Journal and others in what could be one of the biggest headlines for our business this year. 

A leak has emerged suggesting that the Treasury Department wants to stimulate the housing market by lowering the mortgage rates to 4.5% on a 30 year fixed. The devil will be in the details, which remain sketchy at this point.

How will they do it?  Where all the money come from?

And will it be for all mortgage types?  If it includes refi’s, this leak could destroy whatever pipelines loan officers have at the moment.  All current customers could pull their loans in the hopes of waiting for that magic number.

Even those still in the midst of their recession days could be pulling out of their closed but not funded loans. 

If this was the Drudge Report, we’d have a spinning siren at the top of our page.  Stay tuned.

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