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interest rates: Interest Rates Are Coming Back Down - 07/20/09 04:56 PM
Mortgage rates fell to the lowest level since May as home-loan refinances surged. Rates had reached record lows of 4.5% for a 30yr fixed rate loan in April until the end of May where they spiked over 1½% in two days time.
Since then they've slowly edged back down - Today the average 30-year rate fell to 5.14 percent, down from 5.20 percent. The 15-year rate was 4.63 percent.
Some more technical data:     - Overall home loan applications rose 4.3 percent this week:            * Purchase applications fell 9.4 percent             * Refinance applications rose 18 percent     - The global mortgage crisis has cost the world's financial firms almost $1.5 trillion in losses so far.     - … (5 comments)

interest rates: Rates will HAVE to go up!! - 02/24/09 04:05 PM
Based on all economic indicators interest rates will HAVE to start moving upward in the relatively near future.
In the recent months/years there have been several factors that have kept interest rates low: Starting on 2001 after the Sept 11 slowdown the Fed started cutting interest rates which brought down mortgage rates & helped stimulate the housing market. 
At that time there was a feeding frenzy & everyone knows about the resulting housing boom that lasted 5-6 years. During this time interest rates stayed low mainly due to the insane amount of real estate transactions happening during those years.
In early 2005 … (3 comments)

interest rates: I just quoted 4.25%!! - 01/14/09 10:45 AM
Rates right now are the best I've ever seen them, including the drop in the last couple weeks. 
I just quoted a borrower 4.25% for a 30yr fixed loan - They were paying 1.5 points to get this rate, but that is still the best it's been in decades!!
I know there's a tendency with many borrowers to say "If they're this low now, they may even go lower!". That could be true, but the opposite is more likely - Usually when there is a temporary downturn, a sharp upturn follows soon after.
Get it while it lasts!!
… (5 comments)

interest rates: Will the Fed make another cut?? - 12/11/08 01:28 PM
The Fed meets next week and is expected to make another rate cut. The Fed’s job is to promote “maximum employment, stable prices, and moderate long-term interest rates”....quite a task in these times.
This will help lower interest rates on loans tied to prime like home equity lines of credit, many commercial loans, & credit cards, but will not DIRECTLY lower interest rates.
The federal funds rate, currently at 1%, is the rate at which banks lend balances held at the Fed to one another as one bank, finding itself short of required reserves (due to withdrawals) borrows from another that … (0 comments)

interest rates: Rates may get to 4.5%!! - 12/05/08 03:07 PM

The Federal Reserve is continuing to look for ways to get the housing market back on it's feet & with the target rate already very low, Fed officials are mulling new ways to get the economy going.
One discussion is to reduce mortgage rates. Because they have a stake in Fannie Mae & Freddie Mac they would potentially be able to control home mortgage interest rates.
Talks along these lines indicate that rates could get in the low-mid 4's!!
I'll keep everyone posted as to the progress of the Fed's moves.

 
… (6 comments)

interest rates: Interest Rates! - 12/01/08 05:51 PM
Last week the Federal Reserve and Treasury took more action to help the frozen credit markets. The Fed decided to make direct purchases of $100 billion of Fannie Mae & Freddie Mac loans, and plans to buy another $500 billion of mortgage backed securities. The fact that they will now buy mortgage-backed securities is huge, and is a direct help to housing, one of the main areas of economic weakness.
As a direct reaction to this move rates dropped dramatically. 30-yr fixed rate mortgages dropped from the mid 6’s into the mid 5’s, an entire % drop in the space of a … (10 comments)

 
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Dan Magstadt

Lake City, FL

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Mortgage blog written by Dan Magstadt to help give some insight into the mortgage market as well as let everyone know what's going on at Meridian Financial & my personal life!
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