30 year fixed conforming being quoted at 6.75%. How is the market supposed to rebound when rates are so high. Totally messed up. Jumbo loans are well over 7% for 30 year fixed. All this while we have a fed funds going to 1%.. go figure!
The point is that the high rates will devastate the housing market further. It will sideline most buyers.
It will only sideline the "unqualified" buyers. They will have to go to a foreclosure infomercial seminar in order to find a home.
I'm a qualified buyer and I wouldn't lock myself into a 30 yr mortgage at 6.75%. Just too high-- not by historical measures I know but high for the current environment. So, I'll be "sidelined" till the banks decide it's okay to lend again.
get in now............ rates are going to drift up in the next several years... 6.75% will look like a bargain
Those are loan rates for you and I. The dead beats who are in foreclosure will be getting sweet gov't 30 year fixed at 5% or less!