Wednesday, November 26, 2008
Dramatic interest rate change for mortgage money.....
Mortgage Interest Rate Comment for 11/25/08:
Mortgage interest rates have improved as much as a half percent, overnight. The Fed has announced that it will spend $500 billion to buy mortgage-backed securities, $100 billion to purchase agency (Fannie and Freddie) debt and $200 billion for consumer and small business loans. This news has rocked the bond market and created tremendous movement. Currently, buyer/borrowers can obtain thirty-year fixed rate mortgages with no points or origination fees in a range from 5.5% to 6.25%. Earlier today, we saw rate quotes as low as 5.25% for 30 yr. fixed rate mortgages. Buyer/borrowers having strong creditworthiness and seeking larger loans (up to $417,000) can obtain the better rates.
CAUTION: Bonds are volatile, so these rates can change quickly.
Happy Thanksgiving. Be thankful for the lower rates. Let us hope they last!!!!