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Monday, October 05, 1981

Thursday Open Thread

This is your open thread for today. Please post random links and off-topic discussions here.


Kaleetan said...

Its looks like refinancing is up - either people are moving to a fixed rate or getting new ARM's before the resets take place. This might take some of the sting out of the great 2007 "rateshock".

"The Mortgage Bankers Association said Wednesday that loan application volume increased strongly in the week ending Sept. 29, as did refinancings, as interest rates eased."

S Crow said...

Mostly getting into new ARM's. There are some 30 yr fixed rate borrowers but it's mostly refi from one ARM to another.

The borrower is rolling loan fees, cars, cc'ds, etc into the new refinance loan amount. So they are increasing their base mortage amount from where it was initially. To consider financing all the consumer debt into a higher encumbrance on their home with a 30 yr fixed is not "doable" for a lack of better term.

Forward looking, this scenario may become more difficult if housing prices go flat or down: appraisal problems.

Richard said...

Last weekend I took advantage of the indian summer and camped out at Lake Chelan. Similar to Bellingham, the drive along the west side of the lake was a sea of for sale signs on houses and empty building lots.

synthetik said...

Most of these people cannot afford to refi into a fixed loan, otherwise they'd have already done it.

My buddy who has an interest only loan in Denver just lost his 100K/yr job last night.

Foreclosure rates are highest there and I hope he doesn't add to the statistics.

synthetik said...

Looks like Susan Ryan has been taking cues from meshugy. (inferring Microsoft will save us from a housing crash)

And she used the term "chicken little"! heh. I love it.

EconExchange said...

What is funnier about Susan Ryan's post is the fact of how does that Jobs artical support her case? Almost every one of those places listed with BETTER job markets are TANKING,

Cape Coral-Fort Myers, Fla.
Las Vegas
Sarasota-Bradenton, Fla.
Riverside-San Bernardino, Calif
Washington, D.C.

Obviously a strong job market is no impediment to this crash.

blueskitten said...

I was just browsing the archives of the Seattle Times real estate section, and found this article from 2000 with headline, "Will the bubble burst?" Though it focuses more on high-end properties (the kind that dot-com millionaires were buying), it asks a lot of the same questions people are asking now.

dalas said...

If you're trying to ride this out, fixed rate is alright. Otherwise I still don't see the benefit of paying for the highest interest rate on the market, when most of us are likely to move out of the house within next 5 years.

Richard said...

After stalling for abot 10 days around 2950, Seattle's inventory according to Ziprealty has broken the 3000 mark.

As of tonight, inventory is showing 3025 available units.

Perhaps the "leveling" over the past week+ was due to delisitng. Several homes I drive by on my commute have for sale signs on the lawn but no MLS listing.

TimbakTumba said...

I've been reading posts on this blog for quite some time now and I think you guys have been doing a brilliant job!

Here is an interesting flipper that came across my attention on craigslist:

This house is listed at ~$1.4million - 1950yr 1490sqft

It was bought on 7/29/2004 for $437K...The listing price is now almost 3 times!!! Unbelievable!

Lake Hills Renter said...

Another for sale sign went up today on my route home from work (residential Redmond/Bellevue). For those keeping score, that's now 9 houses for sale in 3 miles, not including the new subdivion of McManions being built on spec. And one new "for rent" sign.

dalas said...

It's West Bellevue...that's not unexpected. Anyhow, the house seems a bit overpriced, but easily around a million for its address and location. Should see the other houses being sold in nearby area with NOTHING.

Btw, adding those Viking and trying to push up the value...I don't know...

wreckingbull said...

I think it is funny how the term retro chic is getting thrown around these days. (As touted in the Bellevue listing above)

Whenever I see that, my mind superimposes frosted turd. Sometimes this silliness convinces me of a bubble more than the data itself.

dalas said...

Perhaps you should investigate more into this "silliness" you're referring to before judging. Industry outsider are still just perceiving third party information without fully understanding the correlation.

wreckingbull said...

sil‧li‧ly, adverb
sil‧li‧ness, noun

—Synonyms 1. witless, senseless, dull-witted, dim-witted. See foolish. 2. inane, asinine, nonsensical, preposterous.
—Antonyms 1. sensible.