How have interest rates been? Are the lenders offering more loan products?

     According to those that know, they are still higher than they should be; based on the true economic indicators.The larger lenders have been getting back on course over the past two weeks or so, which makes me feel better.This means that more loan products are coming back to the portfolio, although gingerly and in new and less risky forms. Products such as, the stated income Jumbo (over $417,000) are coming back into play, although the interest rates are unreasonable. FNMA Levels I, II and III are being done, with higher standards and higher interest rates. High LTV loans are being offered, but up to 89.9% LTV and with grave penalties in interest rates.

     This is all awful, but better considering what the past two months have been.I believe in the next few weeks, we will see a decline in interest rates for the perfect loans as well as the not so perfect mortgages. Yes, rates will go down.Odd, this all happened so quickly and so fiercely. The “collapse” of the mortgage industry had such a sudden affect on the global economy as well as the domestic housing market. I am still amazed that this seems to have been brewing for so long and then it happened like a blip on the radar. Terrible rippling affects and then disappears leaving destruction in the wake. Again, we do not know if it is over or for how long the affects will last.My guess is that, like most things, people forget and move on. Watch for falling interest rates……

– Dale Siegel