What an exciting week with the holiday gift of lower rates last week. Ther is no more reason for your clients to wait. Rates will not stay this low for long as the goverment continues to put initiives forward to help the economy and sometime soon they will begin to work thus moving rates higher. Lastly dont forget this is the last month before the new FHA changes take place with the new max loan amounts and minimum investment(downpayment) raised form 3% to 3.5% . 2009 FHA Maximum Mortgage Limits
Atlanta MSA New Limits after Jan 1, 2009 $320,850 $410,750 $496,500 $617,000 Realtor Toolbox Providing up to date relevant information to real estate professionals is one of the business practices that sets us a part. We have equipted our website with tools that are available when you are ready - Realtor Toolbox. Learn to Earn is a belief that we hold true to as it has helped us to build a by referral only business. In the pages below we break down different resource tools that you can utilize in your real estate business. Continuing Education Joint Marketing - just added Market Data - check out Real Estate Success Series Market Comment Mortgage bond prices rose last week pushing mortgage interest rates lower. Trading remained volatile as trading was thin amid the shortened holiday trading sessions. Mortgage bonds rallied nicely following the announcement that the Treasury and the Federal Reserve will spend $800 billion to help the ailing credit markets (details in article below). For the week, interest rates on government and conventional loans fell by about 1.625 discount points. The employment report Friday will be the most important data this week. Look for any additional moves by the Fed, the US Treasury, and legislative developments to also result in mortgage interest rate movements. LOOKING AHEAD
The US Government finally took a needed step to stabilize home prices and help lower mortgage interest rates with the announcement of a new $800 billion spending plan. While rates on Treasury bonds had pushed historically low over the past few weeks, rates on mortgage bonds were way behind. The housing market remains in peril and the demand for mortgage bonds is not as strong as the demand for Treasuries. Fortunately, the Federal Reserve announced it would purchase $500 billion of mortgage-backed securities and another $100 billion of debt from Ginnie Mae, Fannie Mae, and Freddie Mac. This spending is an effort to improve the credit markets so businesses and consumers can get loans. Treasury Secretary Henry Paulson said, "This lack of affordable consumer credit undermines consumer spending and, as a result, weakens our economy." The Fed will also make $200 billion available to help with the consumer debt market. The initial reaction to the plan was very favorable for mortgage interest rates. The financial markets were relieved that something was done to address the housing industry. Keep in mind that despite the recent improvements the housing sector still remains troubled. It will likely take more efforts to resolve the credit freeze. Expect more market volatility.
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