Home Loan Resources

Well, the Feds meet again this week and the big question we are looking for is if they will raise or lower the Fed funds interest rate.  Have interest rates dropped too far too fast or will the economy work itself out?  That remains to be seen.

As a reminder though, when you here that Feds lower (or raise) their fed funds interest rate, this does not directly affect  the 15 and 30 year mortgage rates.  The Fed rates are short term rates that primarily affect credit cards, home equity loans and adjustable rate mortgages.

If you are interested in what the 30-year mortgage rates are doing, get in contact with your loan officer and ask him to keep you posted on these rates.  Interest rates for home loans can change every day, not just when the Feds meet.  Historically, 30-year rates are still very low, although they are just slightly higher than their 40 year lows of a few years back.  It is still a good time to buy or refinance a property!

“The Mortgage Bankers Association said its seasonally adjusted mortgage application index, boosted by increased demand for both purchase and refinance loans, rose 10.9 percent to 557.1 in the June 6 week.”

This is a good sign for the economy. I am seeing a lot of offers and deals on the bank owned properties getting approved. With all the buyers taking advantage of the lower priced housing and the overall low interest rates, we are optimistic in seeing a turn-around in the near future.

Obviously this will not happen over night, but I am seeing that light at the end of the tunnel.