Replies to post #450941 on Fannie Mae-No Politics (FNMA)

[whipstick]

see it's no problem, we'll all just get ARMs.

4 fed rate hikes later... oh shit I shouldn't have gotten an ARM now my payments are way too high and now the 30 year is gone... welp there goes my house... or at best I'm underwater because now affordability for the next buyer at my basis doesn't exist! oh well I guess I'll just lose all that equity I put down.. won't I be thrilled.

Also love how they try to equate the 30 year fixed rate at 7% with a 15 year loan but conveniently leave out the rate on the 15 year note as if it will be wildly different than the rate on the 30 year assuming 7% is the prevailing rate at the time... Currently the spread differential for 30 year and 15 year rates is 58 bps. So sure, if you leave out the principal portion of the payment on the shorter amort it's not that big of a difference, except that's not how it works.

amazingly misleading.

[Pecker9Wood]

It has been my experience that mortgages I have had where 30yr fix and in the 8% range. These rates today are crazy good. I personally would never take an arm or variable anything. The thing missing in the article is that the GSEs taking the mortgages free up capital for those loaning too make new loans at higher rates. Because the government has done as much too keep those rates low there isn't any incentive for the banks too be hard pressed too make new loans and another reason why action too free up the twins isn't on the very front burner. There is a lot of business generated selling, buying and making loans that stimulate the economy and it too is on the low. Still not seeing the new builds and the ringing of nail guns anywhere it was in early 2007 and earlier. Thinking most housing left burdening the twins are gone for the most part and it's been 10 yrs. Most companies have retooled at lease two times since and new business are opening. I would have too think there are many young people who have carried some work history and built up cash and would like too own their own homes. Multifamily is just another word for condo and apartment living. This market is ripe and so are the twins. There is no go reason too hold them and more reason too let them do what they do best. They will fuel the market and everyone will benefit including the government. Once the government gets past their foolishness on this part everyone is a winner. Besides, even the government isn't going too be able too hold the line on interest rates.