Wednesday, September 10, 2008

Wednesday Morning Links

I think the big story this week has to be the precipitous and welcome drop in mortgage rates. 30 year fixed rates have dropped from a high of 6.5% in late July to around 5.8% today. Better yet, I am hearing quotes as low as 5.4%- 5.5%.
9/11 Memorial Gets Downsized (Curbed)
Mortgage Rates Take Big Drop After Bailout Plan (MSNBC)
Wilpon Wants Soccer Stadium To Replace Shea (Queens Crap)
UWS Residents Worry About Lines For New Shake Shack (NY Times)
Lehman Brothers Facing Growing Pressure (WSJ)
Arby's Plans 41 NYC Locations (Observer)
Did Apartment At 145 Hudson Set New Downtowns Sale Record? (Observer)


  1. Do you think rates will go even lower? How long do you think rates will stay down?

  2. Pre Credit Crisis, I'd look at the 10 year treasury and assume that 30year conventional rates were usually about a point higher. The 10 year is currently at 3.65%. By the old standard, you's assume mortgage rates would be at around 4.65% give or take. So, you can see that the spread is still pretty high and has room on the downside. Given that the US Govt is now the ultimate backer, you'd assume spreads would continue to decrease. You'd think the move would be lasting. However, in this market you never know! Hopefully rates will continue to creep down.