Comments on: Friday’s Rates http://raincityguide.com/2008/09/26/fridays-rates-16/ Seattle's Leading Resource for Real Estate Information Sat, 21 Nov 2009 06:01:18 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: cautious buyer http://raincityguide.com/2008/09/26/fridays-rates-16/#comment-325926 cautious buyer Mon, 29 Sep 2008 18:41:32 +0000 http://raincityguide.com/?p=2512#comment-325926 It also occurs to me that banks don't actually produce anything, they just move resources (money) around to (hopefully) where it can best be used and collect a fee from producers (manufacturers, etc.) for doing so. We are spending an awfully large portion of the total gross national product (US total production) just to smooth out the way resources (money) are moved around. It also occurs to me that banks don’t actually produce anything, they just move resources (money) around to (hopefully) where it can best be used and collect a fee from producers (manufacturers, etc.) for doing so. We are spending an awfully large portion of the total gross national product (US total production) just to smooth out the way resources (money) are moved around.

]]> By: cautious buyer http://raincityguide.com/2008/09/26/fridays-rates-16/#comment-325923 cautious buyer Mon, 29 Sep 2008 18:35:43 +0000 http://raincityguide.com/?p=2512#comment-325923 Roger, I have some understanding of the TED spread from the same sources you mentioned. Basically, high TED spread = banks not doing well. Most people I talk to don't look into it that deeply, and think they won't be able to get a car loan until Congress passes the bill. Some people writing articles in major news sources think the same thing. I don't think average Joe would be as moved to spend public money reducing TED spread as he would if he thinks student loans and mortgages have ceased. Will the interbank lending problem eventually end credit for consumers? I have no idea. I would be more comfortable if Robert Shiller or some other prominent academic economists who predicted the problem had spent the last week advising congress about solutions. I don't trust the guys who made this problem (while enriching themselves tremendously) to fix it. Roger,
I have some understanding of the TED spread from the same sources you mentioned. Basically, high TED spread = banks not doing well.

Most people I talk to don’t look into it that deeply, and think they won’t be able to get a car loan until Congress passes the bill. Some people writing articles in major news sources think the same thing. I don’t think average Joe would be as moved to spend public money reducing TED spread as he would if he thinks student loans and mortgages have ceased.

Will the interbank lending problem eventually end credit for consumers? I have no idea. I would be more comfortable if Robert Shiller or some other prominent academic economists who predicted the problem had spent the last week advising congress about solutions. I don’t trust the guys who made this problem (while enriching themselves tremendously) to fix it.

]]> By: Roger Ingalls http://raincityguide.com/2008/09/26/fridays-rates-16/#comment-325915 Roger Ingalls Mon, 29 Sep 2008 17:53:47 +0000 http://raincityguide.com/?p=2512#comment-325915 CB: After further study, it seems that the credit crisis is real at the interbank level. I will not try to paraphase the explanation of the "TED spread", but this link may help. http://www.econbrowser.com/archives/2008/09/understanding_t.html The politicians and talking heads know there is no point talking about the TED, because most don't understand it, and certainly don't think that voters and viewers will. Thankfully, there are bloggers that do, and occassionally they will try to dumb it down a bit, so that people who aren't accustomed to pushing around piles of money with 9 zeros can vaguely grasp it. God bless the internet, and save us all! CB:

After further study, it seems that the credit crisis is real at the interbank level.

I will not try to paraphase the explanation of the “TED spread”, but this link may help.

http://www.econbrowser.com/archives/2008/09/understanding_t.html

The politicians and talking heads know there is no point talking about the TED, because most don’t understand it, and certainly don’t think that voters and viewers will.

Thankfully, there are bloggers that do, and occassionally they will try to dumb it down a bit, so that people who aren’t accustomed to pushing around piles of money with 9 zeros can vaguely grasp it.

God bless the internet, and save us all!

]]> By: cautious buyer http://raincityguide.com/2008/09/26/fridays-rates-16/#comment-325909 cautious buyer Mon, 29 Sep 2008 17:33:52 +0000 http://raincityguide.com/?p=2512#comment-325909 Thanks for your input everyone. You pretty much confirmed what I thought. Most people I talk to believe that no-on can get a mortgage, credit card, or student loan right now, and a Seattle times article yesterday said all the above were difficult. This seems like a heck of a big misunderstanding when $700,000,000,000.00 is on the line. Ardell, They didn't have FICO/credit scores in the 80s? I had no idea they were that new. Thanks for your input everyone. You pretty much confirmed what I thought. Most people I talk to believe that no-on can get a mortgage, credit card, or student loan right now, and a Seattle times article yesterday said all the above were difficult. This seems like a heck of a big misunderstanding when $700,000,000,000.00 is on the line.

Ardell,
They didn’t have FICO/credit scores in the 80s? I had no idea they were that new.

]]> By: Kary L. Krismer http://raincityguide.com/2008/09/26/fridays-rates-16/#comment-325851 Kary L. Krismer Sun, 28 Sep 2008 04:39:18 +0000 http://raincityguide.com/?p=2512#comment-325851 If they'd just repeal the Garn act, then it wouldn't matter if the loans were assumable. http://blog.seattlepi.nwsource.com/realestate/archives/148591.asp Well, the seller would prefer it if the loan were assumed, but at least they could sell. If they’d just repeal the Garn act, then it wouldn’t matter if the loans were assumable.

http://blog.seattlepi.nwsource.com/realestate/archives/148591.asp

Well, the seller would prefer it if the loan were assumed, but at least they could sell.

]]> By: Jillayne Schlicke http://raincityguide.com/2008/09/26/fridays-rates-16/#comment-325847 Jillayne Schlicke Sun, 28 Sep 2008 01:38:07 +0000 http://raincityguide.com/?p=2512#comment-325847 FHA 203b loans are fully assumable. The new homebuyer would, of course, have to qualify under FHA's underwriting guidelines and then pay any downpayment requirement. FHA 203b loans are fully assumable. The new homebuyer would, of course, have to qualify under FHA’s underwriting guidelines and then pay any downpayment requirement.

]]> By: ARDELL http://raincityguide.com/2008/09/26/fridays-rates-16/#comment-325846 ARDELL Sun, 28 Sep 2008 01:33:45 +0000 http://raincityguide.com/?p=2512#comment-325846 I do remember that those who had FHA mortgages were more able to sell their homes in a bad market with higher interest rates, because the FHA loans were assumable at the lower rates. Are FHA loans still assumable? If we expect that rates might rise dramamtically in the next 3-5 years, that assumable feature would be good to have. I do remember that those who had FHA mortgages were more able to sell their homes in a bad market with higher interest rates, because the FHA loans were assumable at the lower rates. Are FHA loans still assumable? If we expect that rates might rise dramamtically in the next 3-5 years, that assumable feature would be good to have.

]]> By: Roger Ingalls http://raincityguide.com/2008/09/26/fridays-rates-16/#comment-325830 Roger Ingalls Sat, 27 Sep 2008 16:33:48 +0000 http://raincityguide.com/?p=2512#comment-325830 Ardell: I think you summed it up pretty well. Banks are willing to lend to credit worthy borrowers with moderate risks, but the borrowers are reluctant to borrow, at today's prices. Ardell:

I think you summed it up pretty well. Banks are willing to lend to credit worthy borrowers with moderate risks, but the borrowers are reluctant to borrow, at today’s prices.

]]> By: Kary L. Krismer http://raincityguide.com/2008/09/26/fridays-rates-16/#comment-325829 Kary L. Krismer Sat, 27 Sep 2008 16:33:28 +0000 http://raincityguide.com/?p=2512#comment-325829 Rhonda, do you mean lower values to loan? :D Rhonda, do you mean lower values to loan? :D

]]> By: Rhonda Porter http://raincityguide.com/2008/09/26/fridays-rates-16/#comment-325825 Rhonda Porter Sat, 27 Sep 2008 16:23:42 +0000 http://raincityguide.com/?p=2512#comment-325825 cautious buyer, the biggest issue that I have seen with credit worthy borrowers is for refinances with higher loan to values. cautious buyer, the biggest issue that I have seen with credit worthy borrowers is for refinances with higher loan to values.

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