Home Mortgage Rates Rise Even After Feds Cut the Banks Still More Slack

[David Zephyr]

Here's today's average mortgage rates offered by banks and financial institutions across the country:


Term.......................Today..........Last Week


30 Year Fixed.............5.75%...........5.59%

15 Year Fixed.............5.35%...........5.16%

1 Year ARM................5.57%...........5.45%

30 Year Fixed Jumbo....6.72%...........6.59%

5/1 ARM....................5.63%...........5.45%

3/1 ARM....................5.52%...........5.28%

[ThomCat]

1. Banks will consistently use any excuse to raise rates

while also taking every oportunity to use the government to minimize their risk. There will be as little relationship between the two as they can manage. That's called "good business."

x(

[David Zephyr]

3. It's all about saving the banks, not people's homes.

How corrupt is the system?

[ThomCat]

4. Exactly. The homeowners aren't worth considering

except as sources of wealth to extract. Banks treat homeowners the same way coal mining companies treat mountaintops. x(

[lapfog_1]

2. They have to make up for all the defaults...

so, by their math, they just need to increase rates to offset the loses...
loses that were due to them raising rates on sub-prime adjustibles...

Right? Right? No problem here.

(Can anyone say death spiral?)

(and oh yeah, once the rates go up, the inventory of current homes for sale will increase because the pool of available purchasers decreases due to the rate increase. More homes on the market will create more deflationary pressure on the current homes and more homeowners will see their equity evaporate and therefore will want to "cash in" if possible or walk away if they are too far underwater... and more death spirals ensue! Great fun! If you aren't a homeowner...)