Mortgage Rate Update – Week of December 1, 2008
posted in Mortgages, Smyrna Vinings Real Estate |The week in review:
The big news of the week came when the Fed stated that they would commit another $600 million to purchase mortgages issued by Fannie Mae and Freddie Mac. The commitment makes the underlying mortgage-backed securities more attractive to investors and home loan rate dropped significantly. Home loan rates dropped about .50% on the week.
What to expect:
Home loan rates are currently at the lowest levels of the year. I feel the Fed realizes that the best way to stimulate the economy is to drive long-term rates lower. I would expect to see additional similar actions by the Fed. We hope they finally just decide to back all mortgage issued by the Fannie Mae and Freddie Mac. This would continue to drive rates lower.
Home prices are low and home loan rates are at the lowest point of the year. If you’re thinking about buying, it’s time to get started. Forget about Black Friday and Cyber Monday, with rates at new lows and great home prices, it’s time to add a home to your holiday shopping list.
Breg-ometer:
Next 7 days: Unchanged to slightly better
Next 30 to 90 days: I expect rates to improve if we get governmental intervention
Rate sample:
30 year fixed rate: 5.25% (APR 5.62%)
$300,000 purchase price, 20% down, 740 credit score
Possibly Related Posts:
- Smyrna Vinings Mortgage Rate Update – Week of August 16, 2010
- Smyrna Vinings Mortgage Rate Update – Week of August 16, 2010
- Smyrna Vinings Mortgage Rate Update – Week of August 2, 2010
- Keller Williams Ranks Highest in Customer Satisfaction among Home Buyers
- Smyrna Vinings Mortgage Rate Update – Week of July 12, 2010
