How low will they go?

Mortgage and Lending with Embrace Home Loans

 So as I am checking my email today I come across a great article on how interest rates are at their lowest state and could possibly go lower. I know you are asking whether you should take advantage now or wait? Well hopefully by the end of this message I can help you better answer that question.

 Let's start with what exactly is going on in the mortgage industry. With the federal funds target rate--which is the Fed's conventional monetary policy weapon--already down to as low as zero percent, Their head Bernanke has to get more creative in his efforts to resolve the economic mess. So that is how the Fed announced two key steps Wednesday that should drive mortgage rates lower. The main key is the  Fed unveiled plans to buy up to an additional $750 billion of mortgage-backed securities backed by Fannie May and Freddie Mac. In addition to the $500 billion it already committed to purchasing. They also said it would as much as double--to up to $200 billion--its purchase of Fannie and Freddie debt. reduce financing costs, which should enable them to pass savings on to consumers in the form of lower interest rates. These rates are predicted to possibly drop below 4.5% on a 30 year fixed which will be the lowest recorded rate in some time.

 Now let's get back to the original thought, should I refinance now or hold off for a better rate? With rates poised to drop to even more attractive levels, fixed rate borrowers that meet the credit requirements should certainly consider refinancing now. I know you are thinking as well that maybe I will hold out until these such rates drop even lower, this is an okay strategy but I will let you know that interest rates are not the only digits on the decline. Home values are also still expected to slightly fall which would make refinancing later tougher due to lack of equity in the property. So I urge you to get the process started sooner rather than later, therefore getting you the most out of your property and save you the most money. 

 I hope my thoughts have answered your questions and please call me now so we can start putting money back in your pockets. 

 -Gary May
 Office- 301-354-8292
 Cell- 240-620-3171

Comments (1)

Debra Cernick
DeShazer Ryan Realty - Libby, MT

Good post.  How low will they go? I think  you are right about refinancing now.

Mar 21, 2009 06:19 PM