Industry NewsMortgage

The 4.5% mortgage myth?

Perspective: Borrowing into trouble easier than borrowing out

The Fed's cut to "zero to 0.25 percent" cost of money and non-response in the mortgage markets combined to produce consternation among a refinance-hungry public. Excepting a frantic hour at no-fee 4.75 percent on Wednesday morning, mortgage rates remain as they have been for 10 days, roughly 5 percent with an inescapable origination fee. And that deal is available only for the best FICOs and loan-to-values. These rates are not going lower any time soon, not on a sustained basis, not without extraordinary intervention by the "Obamanauts." Miracles are rare. The average client simply does not believe the paragraphs above. If I were not a lifer in the mortgage trade, I wouldn't believe them either. In the last month, irresponsible media reports, wishful expectation by housing industry survivors, and trial balloons by non-market theorists have made "four-and-a-half" (percent interest rates) a national imaginary fact. Why are rates stuck? The main r...