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Interest Rates!

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 day or two!!

This will definitely help boost real estate sales.

Posted by Dan Magstadt on 12/01/2008 05:51 PM

Comments (10)

Interest Rates in the ActiveRain Channel

interest rates, fannie mae, mortgage backed securities

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10 Comments on Interest Rates!

DEC

2008

Good to know! Thanks Dan!

Finally the Government is addressing the actual source of our current financial mess...thank God.

Thanks for the update Dan,

rob

James & Rob: Glad to get the news out there...thanks for stopping by!

Hi Dan;

Great news for the housing market. I love it!

Dan,

Thank you for your post. I wonder if buyers are aware what a buying opportunity this is right now.

THIS IS A GREAT TIME TO BUY A HOME IN JOHNSTON COUNTY, NORTH CAROLINA.

5.5% INTEREST RATE

REDUCED HOME PRICES

HUGE INVENTORY OF HOMES AVAILABLE

Linda W DeRusha

Re/Max Southland Realty

919-418-7442

Anthony: It is good news for the market - I think it will help get more buyers out there

Linda: I'm doing my part to get the word out there!

That is spooky and the market is even spookier these days. We are in uncharted territory!

Dan, I think it will have to drop to the low 4's for alot of Americans with good credit. Many are locked in at 4.5 - 4.9 for a few years back. To get them to spend, the rates need to move lower.

You're right Randall...It's very interesting to watch the changes in the mortgage market unfold.

Tim & Pam: It's shocking, but you're right. I've talked to a lot of refinance candidates over the last couple weeks & although I would have thought they would have loved the opportunity to lock in a 30yr fixed rate in the low 5's I've gotten a lot of responses along the lines of "That's good, but call me when they get to 4.5%"!!!

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