berns29scarab

http://www.cnbc.com/id/15840232?video=606449997

berns29scarab

this should definately motivate buyers and sellers...IF there looking to do FHA mortgages

VetteLT193

It's not as shocking as the newscast makes it out to be. If your credit is in the low 600's you should expect things like this... High 600's is 3/4 of a point, that's really not going to stop anyone from buying a house.

berns29scarab

you would be surprised...especially if they've been shopping and already have been pre-approved at X rate with X costs...its definately not good

Sloman

These type of rate hikes are killing the mortgage buiseness how many people in todays market have above a 680 score and under 70%ltv good luck to the first time home buyer looks like FHA is the only way to go

VetteLT193

The 'average' credit score is 678. So, half the people in the US have a higher score than that. I'm also willing to bet that the bottom 30%+ were never in the housing market to begin with. So, this maybe affects 20% of buyers.

berns29scarab

lmfao...dont believe what you read about credit scores !! Myself and everyone else out there doing any kind of lending would love for the average score to be 678. I run between 12 and 15 applications a day for both automotive and home purchases and the average score you mention is definately not the case.

Sloman

The people with that "average " score are already in homes and already have great rates this going to do nothing but slow a already slow market

VetteLT193

My wife is a mortgage broker.

Von Bongo

The 680 doesn't surprise me as much as the 70% LTV. I would guess that a majority of the loans made exceed 70% thereby capturing the most income as possible.

FNMA/FHLMC is doing their utmost to recapitalize, sold prefered stock, cut dividends by 50%, but it's also another step in an otherwise tight housing credit market. Things will get tighter before it's over.

I wonder how long before a class action by shareholders against FNMA/FHLMC