Mortgage Rates Drop to 5.3 %

" Dropping across the country this week -- it's hard to follow because they were up a week ago. Freddie Mac is out with its weekly survey here's a look at the averages nationally the thirty year fixed rate dipping. Now what five point 32%. A quarter of a percentage point lower than the peak we saw in June."

" So the question becomes what can we expect in the weeks ahead from Oakland California Patrick Lashinsky joins -- CEO and president. At the zip realty Patrick didn't see you there is still historically low on not these mortgage rates to matter how you look at it. However you know people's mindset changes when you don't for an half up into the five and I -- one of the board. Staggering numbers of the week really they got overlooked and -- volatile week to week is refinancing went down by 30%. 30% this week when the Mortgage Bankers Association. What do you make of that."

" Well I think it's really not surprising because as the rate of picked up the people who were eligible for -- five. Had a a long period of time where the rates were down in the fourth and they were able to take advantage of that opportunity to do it. The interesting thing is what's going to happen to the -- number. If consumers understand the fact that these are historically great great to have and that it's still a great deal to be done and if you combine that with the fact that home prices have dropped. A significant loan they have we're down to rate some affordability back for the year 2001 or 2002. Hopefully -- drive from new purchase business but 35 business is going to be flow you know for the period of time because effectively by replied in the four point."

" Range you know it's amazing to me watching the vicissitudes. Of mortgage rates I don't ever report to understand what moved them it's like a week people artists out there moving them but this. Most recent -- What's expected and can you tell us what you perceive to be the costs."

" Well I think did firm for most people was expected because it was very hard to understand why the rates went up the way they did. It was an unexpected raised in light of what the Fed is better where the capitalists are that are out there right now that it was really hard that have to follow that that ouija board is as you quoted. About why the rates went up and so when you have breaks that go up they can't really be explained by any data or information that's out there. -- you expect that they will adjust back down them the more to a more normal rate that was done and that was what the kind of happened with these rate they kind of come back down to a level. That was expected based on the fact that they rose at a time when nobody expected from the --"

" Now ouija board might come in handy and ask you this next question -- answering it but I'll ask it anyway the trend then is which direction. Because that's important for people buying a house that are on the fence and saying. A lot and I'd buy rates -- just going to come back down again or you know the opposite maybe now's the time to get in because the trend is up which way this."

" Well we believe that over the next year you're going to see a flow continuing trend of rates continuing to -- It's going to be up and down kind of battle off their butt. From the the wooden platforms that we ran over the next year there's going to be continual pressure to move them up here's your continued inflation pressure even with the economic data showing it's not there right now. There is here about the banks are doing more to try and protect our cap falsely can get out of the TARP funds and get away from that -- we are going to see some increased pressure on the rates to go up over the -- how -- they're going to go up not significantly -- they're probably going to still end up but I historically low level above and half is going to be pressure on the right."

" the national average one year ago I guess the thirty year fixed is six point 35% which really tends to put things into perspective doesn't it Patrick."

" It absolutely does the fact that we're down shows that from the pressure from running again it you know. For most people who were in the housing market the thing to do if it's not just rate that matters right along with home prices. And the fact is right now we are at a very very good point in terms affordability when you combine these low rates with where the home prices are. That combination of good a good piece but the rates we do expect we'll go up. I'm back to a more normal right -- read what we have much."

" Logic of the buyer has been those prices we'll continue to fall and -- half -- the latest Case Shiller numbers showed. Continuing drops in home prices maybe not the same declines we receive few months ago but drops nonetheless so how do you. Change that logic of a buyer who's saying I'm just going to wait and wait for those prices to fall even more they have or."

" Well plan that as a as a broker 2000 helping a lot from higher than sellers actually do that we're no longer thing that data. We are actually starting to see that the average home price in the markets were importing markets. On the average home price in the median home price for their losses are actually up in 35 of those markets. And we're doing in formal offer that we dealt with -- kind of five years. So we're back the thing lots of activity consumers -- wait there's a pretty good deal that I can do so we're actually seeing that. What homes that are moving right now the activity -- starring and about the what's gonna happen if consumers need to see that house -- in -- and then I'll get back at."

" And there we have the free market how about have written about him that Patrick Lashinsky and zip realty good to see thank you so much nice."