Prime comes down to 5%

What does this mean to you? Immediately, any "home equity lines" or adjustable home loans time to "Prime" will be at 5% plus or minus any "margin." That's good news. It should also impact some credit card and auto loans. It doesn't do anything to Fixed rate home loans. The Fed cut the discount rate a quarter yesterday, so it was anticipated...but it did help improve mortgage rates slightly. Investors liked it as the Dow rose 189 points to close at 13,010 on Thursday, however, there is still a lot of fear in the market. Banks are keeping rates, especially JUMBO rates high (They're padding themselves, taking larger profits to offset any losses from foreclosures).

Until we see a turn around, mortgage rates are as good as they're going to get. Every time the Fed decreases the Discount rate, mortgage rates go up. My advice is to take action now and get the best loan available. It's a decent time to borrow money...If you can! Call me for a free consultation. Pat Townsley, 415-485-1776 http://www.ptre.net/