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Will Home Loans be "On Sale" Next Week?

By Tina Maraj

Real Estate Agent with RE/MAX One DRE#01045442

January 31, 2008 04:22 AM

jpeg Now that the FED have cut interest rates another 1/2 point we should eventually begin to see the reflection in mortgage rates. I have had several past clients call me to ask if it is a good time to refinance or to acquire a new home loan. I am telling everyone to KEEP CALLING YOUR LENDER!!!

The banks and lending institutions are trying to recuperate some of their losses during this time, but they will eventually have to lower the rates that they are offering to the consumer. Everyone wants to make money. Lenders are not going to tell you the borrower that "these home loans will be on sale this weekend" like Macy's does. Just keep checking with a Lender that you trust and soon they should offer you a great rate!

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Clint Haynes

Peoples Home Equity, Inc. - Mount Juliet, TN

This is good advice. Staying in contact with your lender about what the rates are doing is very wise.

Jan 31, 2008 04:29 AM

Mike Frazier

Carousel Realty of Dyer County - Dyersburg, TN

Northwest Tennessee Realtor

Tina,

Actually the rates are more affected by the 30 year bond but as bad news filters in the 30 yr bond actually goes up and the yield goes down.

Jan 31, 2008 04:33 AM

Al Maxwell

Keller Williams - Marietta, GA

Real Estate Agent

If it has any effect, I think it will take a little time. As Mike notes, the biggest impact on long term loans is the bond market.

Jan 31, 2008 04:45 AM

Charlotte Home Loans Your Charlotte Mortgage Lender

Charlotte, NC

Keeping in touch with your lender is a fantastic idea. But people must realize that the Fed rate is not a 30 year fixed rate index. It does not determine the rates offered by lenders on any LONG term financing. The short term arms and helocs will see an almost immediate impact. But longer term loans are subject to the bond market which is all over the place right now. 3-4 rate changes a day.

So if you do call your lender and he sayd rates are good, you may want to lock. 10 minutes later, that could all change!

Jan 31, 2008 04:56 AM

I thought about this some more last night and came to realization that

MORTGAGE LOANS ARE ON SALE RIGHT NOW!

Sure, no one runs a "sale" on mortgages, but rates are SUPER LOW! If this isn't a sale, I don't know what is. The problem is that they have been this low too long and people are used to it. Like gas being more than $3. When it first happened, everyone was shocked. But now that we have averaged just under $3 consistently no one gets upset if it hits $3 or more. Just wait till its hits $5 this summer allowing the oil companies to keep it around $4 for a year!

If you are on the fence about buying or refinancing, wake up! The fence is about to fall on you and rates will go back up soon... make your move now. (Its like buying Google or Microsoft shares for $10 each... but not sure what will happen next! PLEASE! LOL)

No offense to anyone, but please realize a deal when you see one.

Jan 31, 2008 10:58 PM

Will Home Loans be "On Sale" Next Week?

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