So I was out on an appointment with an exceptional Realty Executives of Southern Arizona agent, and when I got back to my office I found one of those little yellow stickies saying "Call Christy at the newspaper".
So I spent the next twenty minutes explaining:
- What affects mortgage rates
- What just watching the stock market can tell you about the future of mortgage rates
- Why the Fed movement does not set mortgage rates
- What to expect in the near future for mortgage rates
I was quoted in the Arizona Daily Star today regarding the interest rate cut by the Feds, click here for the story.
HOW DOES THE FED MOVEMENT AFFECT RATES:
Take a look at this chart. It shows a period in January of 2001 when the Feds began a series of rate cuts that the 30 year mortgage was at 7%. After those DEEP rate cuts, through May of 2002, the 30 year fixed rate mortgage was still at 7%.
Today I had a meeting with a prominent financial planner here in Tucson. On the way to my meeting I hear a radio advertisement stating this:
"Hi this is _________ owner of _________ ______ Funding. Now is a great time to refinance because the Federal Reserve just dropped mortgage rates 1/2 a percent. That's right the Fed's lowered mortgage interest rates 1/2 percent."
As the owner of a successful mortgage brokerage, I was shocked at the misleading message from a seasoned pro.
If anybody out there would like me to post how mortgage rates are determined, just leave a comment and if there is any interest (LOL) I will go into detail in a later blog.
I like to get as much knowledge as I can to our Realtor community, so I have a special offer for you...
If you are a REALTOR in TUCSON ARIZONA and would like a FREE audio CD copy of Success Strategies For Today's Market: An Interview with David Jenks, co-author of the best seller The Millionaire Real Estate Agents email me at PDmtg@comcast.net.
I have paid quite a bit to procure the license to distribute a limited amount to Tucson Area Realtors, and it is yours for FREE...on one condition; you agree to meet with me, one of the top Loan Originators in Tucson for a cup of coffee. If you aren't in Tucson, I still want to see your success, so shoot me off an email and I still may be able to get one to you.