Mortgage Interest Rates Drop!

On December 16th the Federal Reserve (FED) dropped its target for the Federal Funds Rate from 1% to between 0 and 0.25%. In addition the FED pledged to use "all available tools" to fight the current downturn in the economy. Based in it's statements the FED plans to keep interest rates at "exceptionally low levels: for some time to come.

In the past the FEDs cut in the Federal Funds Rate has not always translated into lower mortgage interest rates. In this case the announcement had an immediate effect and mortgage interest rates showed an immediate decline.

Mortgage interest rates are now at all time lows. Unlike the past when mortgage rates were the same for everybody, mortgage interest rates are now priced based on factors such as loan amount, credit score, loan purpose and loan to value. Call me so we can determine the interest rate for your particular situation.

As has happened in the past, these low interest rates will cause a flood of new mortgage applications. The crisis in the mortgage market over the past few years has caused many mortgage companies to close or cut back on staff levels. Don't wait until you feel interest rates are at the bottom to get your application started.

Whether your looking to buy or refinance, call me today. I'm here to help. The best place to reach me is at my home office 301.353.9360. You can also email me at mtginfo@aol.com

Have a safe and happy holiday season!