Why are the mortgage rates not coming down when the fed cuts the rates? The reason mortgage rates are not coming down as much as the fed cuts the rates is that buyers of mortgages are nervous.
When you do a mortgage it is bundled up with other mortgages and sold to investors. Sometimes it is Wall Street, sometimes it is foreign investors, sometimes it is other banks. With all the foreclosures many of these bundles have lost money. So investors are fearful of buying mortgages. Less demand, the less they are willing to pay for them. That is why mortgage interest rates are not dropping fast.
It is hard right now for banks and lenders to unload the bundled mortgages. Mortgage interest rates have dipped several times below six percent because of market conditions for as short as a day and then the interest rates went back up. Many people have missed the last two opportunities to refinance because they were not notified. If you have an adjustable rate or want to refinance you need to call your local mortgage lender and go over your situation today. The mortgage broker can then put you on a watch list. When the mortgage interest rates dip again they can lock you in, so you don't miss out.
If you are in Michigan and need some mortgage help or want to lock in a lower rate give me a call on my cell at (313)310-9855 or email me at Info@russravary.com
For more on Michigan Mortgages, Michigan real estate go to my website www.RussRavary.com Search over 70,000 Michigan homes for sale
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