Mortgage Rates Plummet Thanks to the Fed!
Filed Under Real Estate · Tagged:
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In Late November, an announcement that the Federal Reserve and US Treasury would purchase up to $600 billion in asset-backed securities sent mortgage rates plunging below 6%. This is a bold step towards a more stable economy. Not only will this increase the availability of credit, but it should help support the housing and financial markets as well. For new buyers and for homeowners looking to refinance, this is great news. While no official announcement has been made, there is rampant speculation that the Treasury will purchase additional mortgage backed securities to force 30 year fixed rates down to 4.5%. With interest rates near historic lows, home prices at 2003-2004 levels in many markets, and a tax credit up to $7500 for first-time buyers (anyone who hasn’t owned a home in the last three years) the current real estate market is ripe with opportunity!
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