This morning the Fed surprised everyone by taking a .750 cut to the Fed Funds Rate - prior to the opening of the stock market the Dow futures were off over 500+, it then opened up almost as low and since has made a 350+ point recover to just off 150+. Bonds of course were the beneficiary of a massive flight to quality, but are starting to drop to the morning lows, which are still pretty high.
What does this mean in the terms of real estate financing? This will move "other markets" (bonds, treasuries) around and will absolutely help lower the fundamental mortgage rates. Now, it's up to the banks to play ball. They can still hide and recoil from the market due to fear, or they can loosen up a little. Conforming loans (those under $417,000) are the "sweetheart loans" that the banks are advertising. Watch out for misleading information in print, radio and TV. Just because they say that your payment will go down $1000 per month doesn't make it so. Start your new loan here with veteran mortgage broker Pat Townsley. 415-485-1776. http://www.ptre.net/
1 comment:
Hello Pat,
Excellent overview. Your insights and guidance are greatly appreciated. Keep up the great work.
Best wishes and success always,
~ Rk :-)
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