CA Interest Rate update and News you should Know

July 15, 2010 (FreeRateUpdate.com) – Rates for our POV* came out and stayed stable as none of the major Wholesale Lenders repriced for the better.  Conforming rates at 4.125% and High Balance Conforming at 4.375%.  Super Jumbos at 5.250%.  Like the Limbo song says…”how LOW can you go?”  Questions and feedback welcome at lololoans@yahoo.com

SCARY ”MOVIE”: With the House passing the “sweeping Financial Reform” , and assuming it passes in the Senate (will the Rahm-anator be paying late night visits to Senators?) what is in store for the nation’s Lenders, and of course what is in store for YOU Mr. and Mrs. Borrower?  This legislation will give birth to to slew of Government regulators designed to protect the Consumers from themselves.  As of this writing, already in place,  there are a SLEW of Federal laws and statutes to protect the Consumer.   There are a SLEW of Federal Laws to protect against predatory Lending and shady Brokers.  There are a SLEW of Federally mandated disclosures that, if thousands of home buyers had bothered to read,  would have explained the pratfalls of the Pay Option ARM.   These are all good things..really. But enough is enough.  The Govt “boot” will now be on the throat (to borrow Obama’s term)  of Lenders and that my friend is a scary thought for the Free Market.  You know what is even MORE scary?  This quote from one of the House co-authors of the bill, Rep. Chris Dodd:  “No one will actually know how this works until it is in place…”    Be afraid. Be very afraid.

And more cheery news: Results from the HomeGain.com annual survey of Realtors nationwide has 37% of responding CA Realtors thinking home prices will increase in the near future.  That glass is half full!

*POV = Plain, Old Vanilla Home Loan: 30yr fixed, fully amortized, single family home, at least 20% equity, slightly lower rates and costs for those that use a Designated Driver this weekend.