CITI, Wells and Others Curtail Lending! They Are Broke Too! OUCH!
This is a serious problem...we have no Real Estate loans in CA already. Unless you can live with a $417k, 6%-6.5% 30-yr fixed rate with 5 to 20% there is nothing for you. The new 'Agency Jumbo' loans have harsh pricing adjusters so the rates are closer to 7%...much better than the current 8% from Banks I suppose. But still, I can promise you that unless 30-year fixed rates go below 5.5%, housing and mortgage activity will continue to flounder. Anything higher and the purchase money borrowers can't afford it and the refi money do not need it. Why get out of an exotic loan paying 1% to 5% for a 7% fixed rate? -Mr Mortgage Citigroup, Wells Fargo May Fuel Recession
by Curtailing Lending
By Mark Pittman, Alan Katz and David
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