Fed Move Lowers Rates Perception is Reality

The Federal Government's moves yesterday have produced a flurry of interest and the first positive mortgage press we've seen in months.

The rates dropped from mid 6's to mid 5's. That's about $70 on a $150,000 mortgage. So the reality isn't huge.

However, the publicity led to a positive perception and some lenders were reporting a 100% increase in call activity.

Interest rate have never been a problem throughout this entire "housing crisis". As opposed to prior housing crises when mortgage interest rates were in the 16-17% range.

Let's just hope that the lenders don't go back to what got us in trouble the "no credit, no money, no job - NO PROBLEM" underwriting that led to the defaults.