Morgtage Rates Fall to 6-Week Low

" Down once again this is good news for homeowners how much can it help. That's Greg McBride senior financial analyst for Bankrate dot com Greg. I'm entrusted in the re -- market because it seems to make -- so many people on the water up owing more than their house is worth. -- five is the answer that had a tough time of it recently low mortgage rates really -- allow the re five business. Mortgage rates are going to help tremendously -- the table was really set nicely for millions of homeowners that are in that exact situation. Not just because of the pullback in mortgage rates but also keep in mind that the Obama administration recently raised the loan to value requirement on refinancing. 225%. Of against something directly aimed at those upside down homeowners trying to get out of adjustable rate loans and now one can we expect some relief -- the Jumbo the on the thirty year fixed rate Jumbo mortgage we just have it on the screen that well -- a six and a quarter percent. Any relief inside that. I wish I had better news on that front Steward -- now the rates do remain prohibitively high on the Jumbo mortgage front and they're really there is no sign of of of improvement aside from the fact that we are seeing. More lenders come back into the marketplace long term that'll be good but in the short term it's provided very little. In the way of immediate benefit in lower rates now look at the other side of the fence we -- good news because mortgage rates are down. I have to ask why is -- while mortgage rates down on my answer would be that the economy just is not performing very well and looks really grim for the future is that the other side of the fence. They yes exactly the pendulum of sentiment swings both ways and sell a month or so ago when the concern was about that inflation and -- with the economy rebounding we saw mortgage rates flirting with 6% and now all of a sudden reality sets and yet the economy is still very weak. We see mortgage rates pulled back so yeah I'll be careful what you wish for yesterday to come down I would not hold -- of those sub 5% rates because I think that ship has -- about a five and a quarter percent does that awful real relief I mean Miller a million homeowners have five and a quarter as opposed to five and three quarters 6%. It does I mean ended the president to way to me if you're refinancing a fixed rate loan. And you shape that rate from say six and a quarter down to five and a quarter. But some is going to save a couple hundred dollars a month that way it's going to -- a little light from the household budget the other side of the equation is this it's going to help people get out of adjustable rate mortgages. Locking in the low fixed rate and -- in what amounts to permanent payment affordability. And that's absolutely critical we have to get people out of those adjustable rate loans before interest rates increased. -- we've seen this movie before real fast walk count how many points would not -- to get a five and a quarter percent thirty year fixed rate loan. Right now off thirty year fixed the zero point to get to about five and a half percent if you want to get below that you're looking to have the pony up about a point. To bring it down to the five and a quarter or percent neighborhood the five and a half percent zero point it's not bad not bad historically very good I'd say yeah okay. And Greg McBride that's where exactly they're against the Bankrate dot com got it right C --"