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Okay the housing markets may be hitting bottom they they.
Mortgage rates have suddenly hit a low three point 89% from Freddie Mac last week Stephen -- is the expert on real estate do frequently joins our program.
He's -- much the ceiling and fine right Steve.
I put that to admit that I got it wrong I -- mortgage rates would go down to 3.5.
Percent last year I was wrong you were right it's only wouldn't happen.
How about this year.
I think there's a little bit more room to go down but I think it's limited I think it's being driven.
By the European debt crisis the nine countries downgraded that you mentioned a few minutes ago.
And what's happening is that's driving the interest rate down on the ten year treasury boat which as you have remarked drives the mortgage rates.
But Stuart it's not helping the housing market here all that much.
Because the underwriting standards have tightened I think.
To the good I think that's an important -- running said that means who couldn't get a refi right yes and get yes so they're requiring more equity more of a down payment.
More -- -- more coverage and so not many folks are.
-- are -- are you know complying with it or or are eligible for it and so everyone who has.
-- able to refi has already -- for the most part.
So supposing you're not a on the war -- Yeah you don't on the water and you want to refi you telling me that not as you have to jump through hoops Melissa yeah they're all talking about that in the break added that we've all gone out and taking advantage of the fact that rates are lower pretty be so difficult.
And it should be read it and he's not how we got into the -- what so what exactly what you said so much more paperwork so much more proof.
Everything that they didn't do the first time around that got us into this mess we're not saying it's a bad thing it's a good thing they should be top on -- borrowing money it just makes it very -- -- I think that you end up at the same people refined over and over again who can afford their homes and who are already -- rather than helping the people.
Turn to the people who are processing the refinances where's the common sense we talked about this I had to supplied two years worth of income tax returns and yet they were -- hold everything up because -- W -- We have got that income tax returns -- yeah absolutely.
All right last question there is talk in the market place that the government will step in with a program that cents.
If you look up to date on your monthly payments.
You can refi even if you're on the war to win on cap will make it so that you couldn't refi.
Is that gonna happen if it did -- would it help.
I don't think it'll help at all because now talking about refinancing so those are people who already own homes that's not gonna help the housing market Stewart at all not it's -- -- an awful lot of people you know they're gonna help us are gonna help some people the real back story here Stewart -- it's not just Italy that's next.
It's the United States after that President Obama just went for -- the one point two trillion.
We're spending money here go professed.
We are next they're -- -- be more downgrades and if we're bumping along bottom here at these rates Stewart imagine what happens when the rates go up and that's what's gonna happen.
That if cataclysmic stuff that from -- yeah it's true.
It is true you think.
Of course it's true I mean eventually inevitable it is inevitable drop from the housing remains -- -- -- mechanical different result of negative political -- -- I don't November of this year it's a different story of that that is true.
If they different political party comes in.
And if they finally do something about it and gain control to -- the Republicans have not done that yet okay even with control over the house and but if we don't.
The rates are headed up.
I didn't know he felt like this for.
The Catholic clear now -- -- access hi Steve and good stuff.
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