LuxBeat Local Real Estate Professionals discuss rumors, facts and opinions on Luxury Real Estate in Boston, MA and Providence, RI

August 29, 2007

Interest Rates Are Dropping

Filed under: Boston Real Estate — Joshua A. Golden @ 1:55 pm

In the last few weeks interest rates on a non-jumbo loans have fallen approximately 25 basis points.  Unfortunately though, luxury condo buyers are getting hurt the most as they are making up the slack for the subprime mess.  A jumbo, 5 year ARM, which are loans over $417k are reaching upwards of 7.5%(6% 3 months ago).  Forget about 100% financing, it does not exist in this environment.  My friend who works at First Horizon mentioned that there was no warning for this.  it happened overnight so professional and novice investors alike could not prepare.


My opinion: Personally I think rates will start to come down more dramatically the Fed lowers rates and people on Wall Street put their money in safer investments like bonds.  As people buy these bonds, the yields will go down and interest rates on home loans will follow.

No Comments »

No comments yet.

RSS feed for comments on this post. TrackBack URL

Leave a comment

You must be logged in to post a comment.

Powered by WordPress