15-year mortgage rate hits record low

We`re witnessing the beginning of the next housing bubble. These rates are artificially low thanks to the money being pumped into circulation by the Federal Reserve. Spend wisely, within your means, and save save! 92 5 Reply

jkjk SharpndPensel21 April 26, 2013
Well at least banks are verifying income these days! Ha! 46 1 Reply

JOSE--USMC--0311 jkjk10 April 26, 2013
that leave the lower 50 % of americans out of the housing market. 1 Reply

gstangler@aol.com jkjk17 April 26, 2013
I doubt it. First they have to verify the borrower is a human. Once they get that down, then they can take on the income verification. 0 Reply

ShlepRock gstangler@aol.com14 April 26, 2013
LOL 0 1 Reply

AJ1968 SharpndPensel21 April 26, 2013
The housing bubble was caused more by loose credit practices, people buying more than they could afford, and variable interest rates. Low fixed rates and tighter lending standards aren`t the path to another bubble. Anyone with a variable loan should refinance and lock in these low rates. As should almost anyone paying over 5 or 6% on older home mortgages. Cause you are at least correct that these rates won`t last. 50 4 Reply

gstangler@aol.com AJ196817 April 26, 2013
Virtually nothing in banking has changed.... It is only lip service when they say it has. Reversing Glass-Stegal to get the banks out of financing is the only guarantee, and only if those that offend it are sent to prison for a long time. 9 1 Reply

netdiv gstangler@aol.com14 April 26, 2013
Banks bypassed Glass Steagall by creating separate investing divisions. Besides making it more difficult to move capital to markets, it lowered returns on investment and increased the cost of borrowing. 1 Reply

TopsyKrets netdiv11 April 26, 2013
So make it illegal for them to bypass it then. Simple. It`s not a business regulation issue - it`s a crime and law enforcement issue. 0 Reply

freespeechma AJ196815 April 26, 2013
At what point do we start putting some of the blame on the large banks who knew G-d damn well that these people couldn`t afford it and yet somehow still were approved for their loans. NEVER EVER DO WE TALK ABOUT THE F-ing GREED FROM THE BANKS. BTW, Who did we bail out, NOT the people who lost their homes, NOPE we bailed out the criminal bankers who are responsible in the first place. HEY AJ THE BANKS ARE GOING TO SCREW US AGAIN, THE BALL IS ALL READY IN MOTION. 5 1 Reply

AJ1968 freespeechma15 April 26, 2013
See where I said the bubble was caused by loose credit practices and variable interest rates? The banks created those, so of course they are to blame too. I never claimed otherwise. We are not in disagreement here. I simply also blamed those people who purchased houses well out of their price range. 10 Reply

hypnotoad72 AJ196811 April 26, 2013
Or people who bought while it was in their price range but then had the rug pulled out from underneath them. Add in THAT and not every buyer out there is a leech, or whatever it is you would call them... 0 1 Reply

AJ1968 hypnotoad728 April 26, 2013
Why would I call them anything negative? I gave three simple statements of things that added to the bubble. Two were the fault of financial institutions. And some people did take on mortgages out of their price range. And others bought 2nd properties as potential income generators and did not succeed. And some were good humans who suffered a change of income suddenly. And some were likely leeches preying on loose credit practices. And some were pushed by banks into thinking variable interest was the way to go when it wasn`t. And some lost a job, or a spouse or money in the market. And some... ...get my point? There are a million scenarios, with different causes to blame. It takes all kinds, and I passed judgement on none. Just saying, many people could not afford their mortgages. More than is standard. That is one of the three things I mentioned in my original reply. Nowhere in there is a judgement on those people. 0 Reply

JOSE--USMC--0311 hypnotoad7210 April 26, 2013
the lower 50 % can afford a home now , but can`t qualify for a loan..what they pay in rent can be apply for a home loan . most people pay 800---1000 in rent, with super low rates a home loan can be as low as the rent they are paying now. 0 Reply

JOSE--USMC--0311 AJ196810 April 26, 2013
75 % lost their jobs. 0 Reply

mctopdog AJ196814 April 26, 2013
it was caused by both Reps and Dems pushing home ownership, lax checking of ability to pay, greed by buyers and a "too big to fail" mentality - get the govt out of housing period would be smart. Divest out of Fannie, Freddie, FHA. HUD should be down sized and used for low income, discrimination cases, etc No USA backed financing period. Let the private market run the risks and reap the rewards. 2 Reply

JOSE--USMC--0311 mctopdog10 April 26, 2013
75 % of the homes that got repo people lost a job during the down economy...Greed by banks---Realtors was also a factor. 2 Reply

hypnotoad72 mctopdog11 April 26, 2013
And have us pay for the losses. People inanely whine about socialism, and yet they are clueless in their support of corporatism... 0 Reply

hypnotoad72 AJ196811 April 26, 2013
Given house prices compared to salaries, cost inflation, job offshoring, wage deflation, and other relevant factors, let`s can the addled generalization that everyone is buying McMansions already... 0 1 Reply

JOSE--USMC--0311 AJ196810 April 26, 2013
75 % lost their jobs during the down market. 0 Reply

Chris Dittfurth SharpndPensel21 April 26, 2013
Not really. The housing bubble was caused by people who got ARM loans and couldn`t pay when the rates increased. I`m 24 and bought a house 9 months ago. I got a fixed rate and although taxes and insurance will increase my monthly payment the bank can`t adjust it. 30 3 Reply

Chief of Reef Chris Dittfurth20 April 26, 2013
That is true in some aspects. However many people just bought homes they knew they could not afford.. Since the banks where not checking your income most people just lied about it.. There where people who bought 600k homes but where either not working or had a job that paid little to nothing.. 18 Reply

goldeneagle78 Chief of Reef18 April 26, 2013
Exactly. People with no income could buy a $600k home with no money down, never make a payment, and live in it for 1-2 years before the bank threw them out. I know of countless cases of that happening. Those deadbeats didn`t care if they hurt their credit. It was already bad, and they got to live in a fancy house rent-free for a couple of years. 6 Reply

freespeechma goldeneagle7815 April 26, 2013
You CAN`T just buy a house. Someone within the industry MUST have signed off on it. Therefore someone within the industry has some responsibility to bare. The fact that the whole industry was doing says something. It is so easy to blame the less fortunate. Mean while the banks are back doing the same crap that WE BAILED THEM OUT ON. 2 Reply

hypnotoad72 goldeneagle7811 April 26, 2013
Very true. The banks were the deadbeats in not being bothered to check a few more stats... they preferred to make their quotas look nicer, everything else be damned... 0 Reply

yeomandroid Chief of Reef19 April 26, 2013
Spoken or written by somebody who follows the crowd. Your statement is a complete fallacy. 0 3 Reply

Andrew Alberico yeomandroid18 April 26, 2013
yes, some exaggeration. but the central premise, that people bought homes they could not afford long-term, is certainly true. not the government`s fault nor the bank`s fault...people should use common sense. 5 1 Reply

some dude Andrew Alberico18 April 26, 2013
How is it not the bank`s fault as well? Slightly unethical don`t ya think?? 3 Reply

freespeechma Andrew Alberico15 April 26, 2013
Andrew how long have you worked in the banking industry? 1 Reply

pdf950 Andrew Alberico13 April 26, 2013
The banks deserve blame, but it isn`t their responsibility to budget their clients finances. 1 Reply

hypnotoad72 Andrew Alberico11 April 26, 2013
You must be a fan of TV shows like Dr Fool - all warm, and fuzzy one-liners that do absolutely nothing. See my responses above for a few more details, which transcend your cozy claims. 0 Reply

Terry Wisland Chris Dittfurth20 April 26, 2013
If someone could not afford thier mortgage payment, then the bank would foreclose and take possesion of the house. How does that effect the bank`s assets? Before the crash, houses were constantly increasing in value, so a foreclosure was good news for the banks, since they now not only could sell the house for more, but they also got to keep any equity the buyer had. The biggest factor in the housing crash was the greed by banks who gladly gave out sub prime mortgages, then packaged and sold them as AAA rated securities. 25 1 Reply

yeomandroid Terry Wisland19 April 26, 2013
Exactly. Then we bailed them out to only see the money go elsewhere and to not help those who needed help. God Bless Greedy America. 11 Reply

JOSE--USMC--0311 yeomandroid10 April 26, 2013

moneyart Terry Wisland20 April 26, 2013
The housing market, like all markets, operates on supply and demand. When too many people default on their mortgages, the banks seize their houses. This produces a glut of homes for sale and not enough buyers. That drops the prices of housing. Thus, lowering the value of the bank`s investments. 9 3 Reply

JOSE--USMC--0311 moneyart10 April 26, 2013

hypnotoad72 moneyart11 April 26, 2013
The "law of supply and demand" is very malleable... And granular... but definitely not consistent. I mean, we`re told we need more people doing IT/programming work and yet wages have stagnated or dropped. Excuse me, but with YOUR law those wages should be going up to encourage demand. They have not. Have fun trying to conjure up an excuse to have it both ways. 0 Reply

pdf950 moneyart13 April 26, 2013
Also, some people didn`t take care of their house and associated land. Another blow to the homes value. 0 Reply

hypnotoad72 pdf95011 April 26, 2013
By choice or do they prefer useless crap like transportation, education, tools to remain relevant in the new normal job market, lowered wages, and other things you seem to conveniently be ignoring? 0 Reply

steev Terry Wisland17 April 26, 2013
Terry, ask your company for a piece of real-estate or anything other than money for a paycheck and you will know how foreclosure hurts banks. It`s the liquidity, Terry. 2 Reply

disgustedNY Terry Wisland8 April 26, 2013
Foreclosures are never ever good for banks. 0 Reply

Michael Menzel Chris Dittfurth20 April 26, 2013
Housing bubble was the REASON why so many people got ARM loans in order to benefit from the housing bubble. 8 Reply

disgustedNY Chris Dittfurth8 April 26, 2013
Prices dropped because the money pool available to buy them shrunk. It shrunk because banks could no longer afford to lend it...because they went into debt gambling on mortgage-backed securities. Had little to do with arms to be honest, if walls street and banks had not gambled like mad the arms would have made little difference. 0 Reply

JOSE--USMC--0311 Chris Dittfurth10 April 26, 2013

netdiv Chris Dittfurth14 April 26, 2013
What`s the insurance you`re paying? 0 Reply

gstangler@aol.com SharpndPensel17 April 26, 2013
As a general rule, the populous does as its leadership does. Until the federal, state and local governments reign in their spending, the general consumer will not either. Hence, you are correct regarding the new housing bubble. 4 Reply

hypnotoad72 gstangler@aol.com11 April 26, 2013
1. It`s "rein" 2. Maybe governments should stop giving corporate welfare to corporations that offshore, since offshoring means fewer jobs and that translates into less revenue for government. Wage stagnation/devaluation has the same effect as well. Let`s please look at more issues than just the cozy feel good/ignorant one-liners... 0 Reply

nononsense123 SharpndPensel20 April 26, 2013
Oh, well. As long as it`s the beginning, 2.5% money sounds very attractive. 2 Reply

Michael Menzel SharpndPensel19 April 26, 2013
You think that low interest rate can create low housing bubble? No. Low energy prices to heat and to cool your big house as well as to provide a cheap commute - can create a housing bubble. Good schools and low real estate taxes in suburbs - can create housing bubble. High crime rate in big cities can create housing bubble. Artificially low rate can ONLY help slowly deflate previous housing bubble. 5 Reply

SharpndPensel Michael Menzel19 April 26, 2013
− Wrong. ARTIFICIALLY low interest rates ARE the cause of bubbles in any kind of lending situation. In a free market where the interest rates are set by the market rather than a central economic planner, people know when it`s a good time to spend and when it`s a good time to save. In a truly free market without the Federal Reserve, the more people save, the more money a bank has to lend. At that point, banks would be more willing to lend at a lower interest rate. When a bank`s reserves are depleted, mortgage rates go up, but interest payments on savings accounts also go up, encouraging people to save. These market indicators tell people when it is healthy to save or spend. Because these low interest rates can only exist with the Federal Reserve dumping money into the economy, people are fooled into thinking it`s a great time to buy a home. That`s what happened last time around. People rushed to purchase homes because rates were at record lows and money was available. Shortly after, the crash came and the people who thought it was a good idea to buy homes ended up with a mortgage who`s value drastically exceeded that of their homes. Negative equity.

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15-year mortgage rate hits record low

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