The Federal reserve board gave investors an early Christmas present today, dropping the key lending rate to a RECORD level, never seen since it's inception. October's drop to 1% was thought to be unheard of, and today's drop was EXPECTED to be 1/2 point , down to .5%. However, the FED was much more aggressive in an attempt to jump start Bank lending and dropped the rate by .75% (actually it may translate higher) to between 0.00 -.25%. This is great news for all consumer loans and credit lines tied to this key rate. Wells Fargo also dropped their PRIME rate to 3.25% and other Major players are expected to do the same. After the Fed announcement, the yield on the 10 year note which drives 30 year mortgage rates plunged .17% down to 2.36%, which lowered 30 year pricing by roughly 1/4 point. Rates on fixed 30 year terms are now at roughly 4.75% and I expect another drop tomorrow. It won't be long before we see 4.50%. The governments intervention is finally beginning to kick in. I hope that this allows some folks who were waiting for a bottom to get out there and feel more comfortable to engage in a mortgage transaction. We are at record levels and this is just what America needs to be able to begin to reverse the trend of the past several months.

THIS IS MY OPOINION ONLY AND NOT THAT OF EAGLE NATIONWIDE MORTGAGE CO. ALWAYS CHECK WITH YOUR MORTGAGE PROFESSIONAL REGARDING YOUR OWN TRANSACTION