"George Washington couldn't even get these interest rates."

Hello Everyone, this is your RED-headed Mortgage Guy with news you can use.

The BIG news that hit the market in the last 24 hours was that The Fed's plan to buy up to $300 billion of long-term government bonds and $750 billion in additional mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac.

This was GREAT news and government bond yields plunged by their widest margin since the 1987 stock market crash.  I was calling my clients last night telling them it was time to get off the fence here comes 4.5% interest rates.  I had a few lenders quoting that at the end of the day.

When I woke up this morning I was expecting rates to stay flat, if not be better.  Even after the unemployment claims numbers came out worse, I figured we would be flat at best.  Then the kiss of death hit the airwaves.  Our friends in the media started to state that with this plan by the FED it would drive interest rates on 30 year fixed rate loans down to 4%.  If I hadn't heard this before I would have done more than just shake my head.  When you want the media be positive they have a tendency to overshoot the target.

We are currently seeing the best interest rates on 30 year fixed rate loans EVER.  In fact, in a recent seminar the speaker put this into perspective, "George Washington couldn't even get these interest rates."

Now I'm back telling my clients this and by waiting for lower interest rates that MAY not appear, you not only will miss out on these low rates, but the COST to wait will be costlier to them in the long run.

We now have in our arsenal an $8,000 tax credit for 1st time Homebuyers AND low interest rates.  Take advantage while you can.  You should be feeling like a kid in a candy store if you are in real estate industry.

Have a GREAT day!