Interest rates are the lowest we've seen in 5 months, starting at around 5.5% today!
What caused this? The takeover of Fannie Mae and Freddie Mac by the Feds; the two mortgage firms will now be overseen by the Federal Housing Finance Agency. The government will only temporarily control these firms until they "are on a stronger footing". President Bush says of the takeover, "Americans should be confident that the actions taken today will strengthen our ability to weather the housing correction and are critical to returning the economy to stronger sustained growth in the future." Read the article "U.S. Seizes Fannie and Freddie" by David Ellis at CNN Money for more.
What does this mean for Buyers? "Sunday's Federal takeover of Fannie Mae and Freddie Mac will likely translate into lower mortgage rates and greater availability of credit, experts said. Rates should drop by 1 percentage point from the stubbornly-high 6.39% for a 30-year fixed rate mortgage", says Tami Luhby, author of "What Rescue Means for Mortgage Rates".
"This could be good for would-be homeowners," said Tom LaMalfa, managing director, Wholesale Access, a research and consulting firm. "It would reduce the cost of financing at the new and improved Fannie and Freddie." Tight Standards and for borrowers with weaker credit histories will remain.
Baton Rouge Real Estate is not slowing down! In fact, Baton Rouge was recently named one of the 10 fastest growing real estate markets in the nation by Money Magazine. With these low mortgage rates, now is the time to buy!