Good Morning,
Federal Reserve Chairman Ben Bernanke is speaking to the House Financial Services Committee today. In very brief form, he reiterated the Federal Reserve’s commitment to helping the economy and taking a very measured pace of deciding when and where to stop. In essence, it’s nothing new he’s stating here. He’s just elaborating on the ideas set forth which is taming the emotional reaction from his last words.
This coupled with housing reports showing significant signs of slowing in the building sector have lead us to a dip back down in interest rates. In this market, we don’t know what’s coming next, so take them while you can.
One important item to note to shopping homebuyers is that in many cases a lower interest rate is much more important than negotiating for a lower sales price. Especially on homes in the $200,000 or higher price point, this drop in rates can equate to a 5-15% price drop!
Have a great week!
Matt
Rates: 30 year fixed at 4.375% (APR 4.44) and the 15 year at 3.375% (APR 3.474), FHA: 3.75% (APR 5.835): As always rates change with individual credit scenarios and programs, APRs are estimated based off of a $250,000 purchase price with 20% down and a 740 credit score, if you want an exact quote, call. These are not quotes, merely a baseline measure to gauge how rates change from week to week.
Matt
Matt Royer
Mortgage Consultant, CMC | Homes Mortgage
NMLS# 366970
612-232-7646 c
651-770-0637 o
651-294-1001 f
www.MattRoyer.com
mroyer@homesmortgage.net
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