Will the Housing Bill reduce Mortgage rates?

Question

Will mortgage rates go down with the President signing the Housing Bill? Trying to decide if I should lock in rates today, or wait until Thursday when my lenders new rates come out.

Answer 1

housing bill will not reduce the montage interst  rate.

it will freeze the forclouser rate for up to 2- 3 yrs,and force  banks to take some lost,and stop forclousers fee.

interest rate will not be effective with this bill

Answer 2

Which is it! In the first statement you say your deciding whether to lock and the last statement you say your locked, do you know for sure?  If you have a 5.875, locked in for 30 years at no points, you would be absolutely stupid to change that. I have access to hundreds of lenders and I can barely get a rate of 6.375 without points.  If anything, I think rates will continue their upward march.  As summer correctly stated, the 10 year treasure yield is climbing, that's a very good indicator of where rates are going, if you want significantly lower rates, pray for a market crash, this would put more money into treasuries and drop the yield, thus dropping rates, but even that is questionable as I think banks will keep rates as high as they can.  think about is, b of a, wachovia, and citi all reported tremendous losses past quarter, how do you expect them to recoup those losses........keeping rates up.  The last think banks want is a large rate drop, they don't have the capital to lend right now.  If you have access to the rate you claim you do, take it and run

Answer 3

House bill has nothing to do with mortgage rates.

EDIT:  Your the type of person who gets mad when they don't get an answer they like?  I will say it again....the bill will not change rates.  If anything, the federal reserve is actually thinking of raising the prime lending rate in a week or two.

Answer 4

Unfortunately, rates will not be effected by the Housing Bill. Each lender has their own combination of factors that they base their rates on and these they keep close to their vest. "Trade secrets" if you will. They don't want anyone able to predict what their rates will do. In general, rates follow the 10 Yr. Bond....if the yield goes down, so will rates, if the yield goes up rates will too. Take note: I'm talking about the yield here. The yield opposes the movement so if you see the movement go up by 19/32, the yield will go down and visa versa. I watch money.cnn...if the little arrow is green, it's good, if it's red, it's bad. Right now, the bond closed on Friday at 4.09, a bit high over the past 6 mths or so. Rates have been going up over the past couple of weeks. Another popular factor is what Fannie and Freddie stocks are trading at. When their price goes up, rates go down and visa versa. Other factors: Wall Street activity, unemployment rate, etc. NOW, all of this will not guarantee you a rate increase or decrease. As I stated earlier, no lender will tell you how to predict their rates, but this will give you an idea as to where they're headed. I'm interested that your lender's rates only come out on Thursday? I'm a broker, work with over 100 lenders and get rates daily. If there is significant movement in the indicators, I'll get mid-day price changes...sometimes 2 and 3 per day if there is enough movement in their indicators. They really do keep up with what is currently going on...today...right now, not just on Thursdays. Very few keep their rates for longer than a few days and I'm talking about conventional, prime loans... subprime, commercial, hard money, etc work on different rules. It truly is a gamble...like Black Jack. Do you hold at 16 and be conservative, or see what card comes next? You may have passed up a 7 and will be happy, or you may have passed up a 5 and be upset. You'll kick yourself for making the wrong decision either way...but you just don't know ahead of time. Wish there were more of a definitive answer out there for you. Hope this helps.