Houston Mortgage Rates go down after "Operation Twist" announcement

The federal reserve is trying to start the engine of our stalling economy by using a strategy from the 1960s. Ben Bernake plan is toThe Federal Reserves’ “Operation Twist” was unveiled today, but the big question is how it will affect Houston Mortgage rates.

Under the plan, the Fed would sell $400 billion in shorter-term Treasury debt in its portfolio and use the proceeds to buy an equal amount of longer-term bonds by the end of June 2012. This is specifically designed to bring stability to the market by pulling down mortgage and longer-term interest rates.

I believe we will see a number of people refinance their mortgage in the months to come due to the action of the Federal Reserve. The real question is will home buyers be enticed enough to purchase a new home.

In my last article, I wrote how purchasing a new home today was a smart thing to do. I even quoted Donald Trump who was calling for people to purchase a new home. In his usual fashion he said, that people would thank him in 10 years. I am telling you that you will.

If you have the means to purchase a new home, I am just going to bust out and say it. You are crazy not to take advantage of the best stimulus for the consumer in the history of our country. It is not a buyer’s market it is a super buyers’ market on steroids.

Houston Mortgage rates give move-up buyers $50,000 increase in home.

Lower Houston Mortgage rates have increased the home buyer’s purchasing power by 25%. That means if you purchase a $250,000 home today your monthly payment would be the about same as buying a $200,000 home just a few short years ago. That is a $50,000 dollar windfall.

I can’t stress the enough the difference between a $250,000 home and a $200,000 here in Houston. One has granite counter tops, hardwood floors, bonus/game room, crown molding, and possibly a pool. The other has no upgrades at all and no pool.

First-time Home buyers- It is time to apply for your Houston Mortgage?

If you are renting and paying more than $1000 a month, you could purchase a $120,000 home for $1056.23. That includes your taxes, insurance, mortgage insurance, and principal and interest. That is the whole enchilada. Your down payment would only be $4,200 and we can have the seller pay all your closing costs. If you are a veteran you don’t have to put any money down. Got Bad Credit? No problem, I can refer you to a firm that has been featured on Fox Business News that can repair your credit. The key is to start now.

I am screaming right now. This is as good as it gets. I am going out on a limb here by saying you will never again have an opportunity like today to purchase a new home. Don’t be the one that regretted not taking advantage of these low Houston mortgage rates.