Interest-only and option payment loans had been ways to afford homes in expensive markets. Now even, these products will no longer be attractive. That will impact affordability.
More Quotes from Amy Cutts:
The interest-rate savings are not a primary driver of the decision to refinance a fixed-rate mortgage in the current environment. Now, the dominant refinance borrower is looking at the best way to consolidate debt or finance a big project such as a home improvement. And we also have borrowers who took out adjustable-rate mortgages in recent years that are scheduled to have their payment reset this year that may be looking at the option to refinance into a fixed-rate product or into another adjustable-rate mortgage.Amy Cutts
The 30-year fixed-rate mortgage came in under 6 percent for the last 22 weeks of this year. As a matter of fact, mortgage rates in 2004 averaged around 5.84 percent, the second lowest annual rate ever recorded in the history of Freddie Mac's Primary Mortgage Market Survey.
Amy Cutts
The onset of 2005 bodes well for the housing industry. Long-term mortgage rates are currently below six percent.
Amy Cutts
The bond markets got a little ahead of themselves, causing yields to rise too quickly over the past few weeks. This week saw a bit of a correction and mortgage rates fell for the first time in eight weeks. Continued volatility in financial markets, however, will keep rates teetering up and down for some time to come.
Amy Cutts
That's a very healthy return. If you can make one or two percentage points above inflation and still live in your house, you're making some very nice gains.
Amy Cutts
Readers Who Like This Quotation Also Like:
Based on Keywords: interest-onlyIf I didn't choose art, I would have become an astronomer.
Peter Max
The longer we were in it, the smaller it seemed to get.
William Beebe
A child learns to discard his ideals, whereas a grown-up never wears out his short pants.
Karl Kraus