Mortgage rates are taking a beating this week; Almost a full point increase. I'm looking at the CNN home page and their breaking-news headline "Home Equity Slips Below 50%." That's a horrific sign. Another reason to access your equity line now (if you need it for Anything: see my blog under this posting). Rates reacting to bonds, sentiment and demand. For 15 years, I've been saying: Rates are going to do one of three things: Go up, Do down, or stay the same (on any given day). They've had quite a run-up, testing the top-band of resistance to how fast and high they can go. What will help? An immediate strike by the Fed on the Fed Discount Rate will ease things up on mortgage rates, but with the perceived "risk" to lenders, we should expect rates to remain in the 6%'s for the next few months. It wasn't too long ago when they were at 8.5%. Again, the Adjustable loans are now giving the lowest rate, now fully indexed at 3.87%. That's a sweet rate, but it comes with a bit of cost and less long-term "security." If your Fixed rate ARM is about to Adjust, rates in the 6%'s are STILL a better play than taking the hit on the adjustment. Keep that "Blue Sky Thinking" and stay positive in the face of adversity! Pat Townsley, Mortgage Broker. 415-485-1776. http://www.ptre.net/
Showing posts with label Fed Funds rate. Show all posts
Showing posts with label Fed Funds rate. Show all posts
Thursday, March 06, 2008
What goes up, must come down...
Mortgage rates are taking a beating this week; Almost a full point increase. I'm looking at the CNN home page and their breaking-news headline "Home Equity Slips Below 50%." That's a horrific sign. Another reason to access your equity line now (if you need it for Anything: see my blog under this posting). Rates reacting to bonds, sentiment and demand. For 15 years, I've been saying: Rates are going to do one of three things: Go up, Do down, or stay the same (on any given day). They've had quite a run-up, testing the top-band of resistance to how fast and high they can go. What will help? An immediate strike by the Fed on the Fed Discount Rate will ease things up on mortgage rates, but with the perceived "risk" to lenders, we should expect rates to remain in the 6%'s for the next few months. It wasn't too long ago when they were at 8.5%. Again, the Adjustable loans are now giving the lowest rate, now fully indexed at 3.87%. That's a sweet rate, but it comes with a bit of cost and less long-term "security." If your Fixed rate ARM is about to Adjust, rates in the 6%'s are STILL a better play than taking the hit on the adjustment. Keep that "Blue Sky Thinking" and stay positive in the face of adversity! Pat Townsley, Mortgage Broker. 415-485-1776. http://www.ptre.net/
Thursday, December 20, 2007
Action without Reaction
Last Tuesday the Fed took another step at "helping" the economy by lowering the Fund Rate by a quarter of a percent. There’s also continued talk of the government and banks agreeing to "freeze" certain existing adjustable home loans as well as a bill on the table to eliminate "yield spread premiums" to lenders (in an effort to "level the playing field"). None of these will really help. Foreclosures and bankruptcies will tear us up in 2008, decreasing values and tightening guidelines will make refinancing harder in the months to come. It will make Purchase prices much more attractive, but you’ll need more money down in most cases. Get pre-approved before you shop! Purchase Loans throughout the State of California: Broker, Pat Townsley. 415-485-1776. http://www.ptre.net/
Subscribe to:
Posts (Atom)
