Mortgages rates for conventional, FHA and VA loans have dropped to near record lows, but might now stay there long!
The federal government has been in the news daily trying to do something to weaken the recession. With the U.S. auto industry on the brink of bankruptcy, home prices still in decline and a seized up credit market, Treasury Secretary, Hank Paulson, has been trying different ideas to jump start the ailing economy. The newest idea is to artificially lower mortgage rates by using the “Bail-Out” money to buy mortgage bonds.
I have written many times about the way mortgage rates work, but here is a crash course for those still unaware…
Mortgage rates for conventional, FHA and VA loans are controlled by the mortgage bond market. In short, if the market is up rates go down. Two weeks ago, the treasury announced a plan to buy as much as $500 Billion in Fannie and Freddie mortgage bonds. This news spurred a dramatic drop in 30 Year fixed rates. I was locking in rates as low as 5.25% before they started going back up last Thursday.
Mortgage rates for 30 Year Fixed loans are still hovering around 5.5% for most borrowers. The most important thought I am trying desperately get across to consumers is to GET STARTED NOW!!!!! It takes time to get your loan pre-approved and find the right home… GET STARTED NOW! If you want to refinance but are waiting for rates to drop even lower, remember that you are NOT the only person thinking like that and when the rates hit that magic number you better be ready… GET STARTED NOW!
Myers Park Mortgage is a HUD approved lender offering conventional, FHA, VA, USDA and JUMBO mortgages. We are licensed to lend in North Carolina, South Carolina, Tennessee, Virgina, Georgia, Indiana and Maryland.
Olan Carder contributes articles to Homesfortmill.com on a regular basis. He works in the Charlotte NC metro market which includes Fort Mill, Tega Cay, Lake Wylie SC,
Olan has recently started his own mortgage blog. If you are looking for more mortgage tips and information, check out his new blog at http://charlottemortgageonline.com/.Olan Carder Myers Park Mortgage Direct: 980-721-7478 firstname.lastname@example.org www.mycharlottelender.com