The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Broken_Clock who wrote (85061)	8/14/2007 9:28:24 AM
From: MulhollandDrive	Read Replies (2) of 306849

What the Fed is trying to do is to ensure markets do not seize up while they undertake the painful process of repricing risk and discovering where subprime mortgage losses lie. The Fed wants to help this process along by ensuring it is never compounded by fears about creditworthy institutions' ability to access short-term funds. Late last week it saw clear signs of a liquidity crunch: apparently sound banks unable to obtain short-term finance at normal rates from their regular investors and counterparties. Its response was to become the lender of last resort, ramping up liquidity support by providing overnight money against high-quality collateral. more anecdotal evidence of the credit crunch... i spoke again with my daughter in atlanta and she told me about a friend who is in the process of buying a home in the $800k range, excellent income, great credit score, good downpayment, was quoted an 8% fixed rate on the loan 2 weeks ago, he's been informed the rate is now 13%!! i don't know who he is borrowing from, but something tells me these guys don't want to make the loan i've heard that rates on jumbo's are all over the place from 7 to over 9 percent, but the situation she described to me is just crazy

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