Rates Are Falling!!! Now What???
Many of you may have seen the article in today’s Mercury News Real Estate section addressing the take over of Fannie Mae and Freddie Mac and how that’s affecting interest rates. I am including a clip from it here just in case you missed it:
Fannie Mae, Freddie Mac takeover causes mortgage rates to tumble
ONE-DAY DECLINE IN COST OF A MORTGAGE ‘INCREDIBLE’; HOUSING PESSIMISM WANES
Article Launched: 09/09/2008 07:38:22 AM PDT
The federal government’s takeover of Fannie Mae and Freddie Mac sent mortgage rates tumbling in California, raising hopes that the state’s severely ailing housing market will get a boost.
After the federal action Sunday, consumers with outstanding credit Monday were offered rates as low as 5.375 percent on 30-year fixed mortgages, said Cathy Warshawsky, president of the Silicon Valley chapter of the California Association of Mortgage Brokers. That was down nearly a full percentage point “” a difference that would amount to more than a $200 decrease in monthly payments on a $400,000 loan.
“It’s been absolutely incredible,” Warshawsky said. “None of us expected this to happen. That ought to give people some serious hope.”
As always, I’m curious what you think. Will the lower rate motivate people to buy in the final 3.5 months of the year? And does the soon-to-expire upper limit of $729,750 on conforming loans play into that decision?
I’d appreciate it if you could contact me and let me know how these developments make you feel about the housing market so I can better serve you and my current and future clients.
Please be aware that I am watching this very closely on a daily basis and will be blogging it about it regularly so be sure to subscribe to my blog. The link is on the right or above.
Thanks!
