For all of you who may be sitting on the fence about buying or refinancing a home, now may be the time to jump. Last week, the Fed announced they will insure trillions of dollars of mortgages created by Fannie Mae and Freddie Mac. Investors absolutely loved this news and there was a huge rush to buy Mortgage Backed Securities (MBS). The more money invested in MBS, the higher the yield for the banks. The higher the yields, the lower interest rates get. As a result of all of this, rates dropped down to 5.5% on a 30 year Conventional or FHA loan. We have lost a bit of steam the first part of this week, but rates are still at a historically low 5.75%. If you have followed mortgage rates over the past several months, you have noticed how they have fluctuated wildly from week to week, day to day. Rates have become a moving target and one must act quickly when events like this happen. If you are purchasing a home and Fairway Mortgage is your lender, we could lock your rate in "on the spot", provided you have a property identified.
It is still very much a "buyer's market" in the Indianapolis area. If you couple great prices with low rates, one's buying power goes up and you may be able to get that "Dream House" for a payment a lot lower than you would think. If you would like to know what your buying power is, please give me a call for a FREE consultation and credit pull.
Eric McMillan Mortgage Planner Fairway Mortgage Corporation 317-657-8242
Date: Wednesday, December, 3rd 2008 @ 01:10:07 PM
Views: 4556
This blog entry currently has 8 comments posted.
Jodi
It certainly sounds like a great time to lock in a good rate. Not to mention the $7500 tax incentive for first time home buyers. Hopefully sales will pick up!
Posted on 2008-12-07 21:33:41
Chris
I am also very much interested! just waiting for more rate drop, I have been told by an expert to wait for another week or so.
Posted on 2008-12-08 10:59:00
Scott
If the feds go ahead and approve the new 30 year mortgage with rates at 4.25% to stimulate purchases, the real estate market will take off again. No doubt about it. I really hope they do it and leave it for about 5 years before increasing the rates. We need this.
Posted on 2008-12-09 19:37:08
JCL
It's hard to decide to do it... I'm waiting to pull the trigger to see what rates do in Jan (or maybe Feb) after this whole treasury 4.5% thing.
Posted on 2008-12-12 15:28:01
Jill
Its nice to see rates down around 5 now. The only issue with waiting is I would rather get a straight 5 percent loan instead of waiting for 4.5 and whatever strings might be attached from the government.
Posted on 2008-12-25 20:50:34
james wheelock
I think it is great that interest rates have come down so much. I hope they stay there for awhile to give the media time to grant alot of coverage to it. This might just get people back into the game. If rates stay down I can then say with full confidence that now is the time to buy. It would take a huge drop in real estate prices to make up for the carrying costs of a mortgage. If rates were to get to 4.5% and hold for a period then return to the historical norm of 8.5% it would take a drop in property values of 20% to make have someone break even that did not jump back into the market.
Posted on 2008-12-27 18:14:52
Paul Viau
It certainly looks like the time to jump. If the rates go back up it most certainly is!
Posted on 2009-01-09 09:48:51
dave
I've been hearing rumors about more rate drops as well. I agree, this market is an ideal buyer's market if you have the means.
Posted on 2008-12-04 11:58:33