Home Loans & Money

 A lot has happened since my last post and currently interest rates are near or at all-time lows.

As it has for the last year, the mortgage market continues to generate a lot of chatter in both the media and in Washington.  First there has been talk about the 4.5% 30 year fixed rate mortgage.  Will it become a reality though?  Right now, no one really knows.  Homeowners who could benefit from a lower interest rate need to know that even if 4.5% becomes a reality from Washington’s actions, it would only be available to home buyers, not homeowners seeking to better their rate.  If you need to refinance, you could be left out.  You also may have heard about Hope for Homeowners, which is a program approved by legislators to help distressed homeowners.  However, regardless of its best intentions, the program has not been embraced by investors, and it is not available to many it could help.

In my opinion we may already be at the lows for mortgage interest rate.  The Fed announcement that they are going to buy up to $600 billion in mortgage-backed securities has help to drive rates to historical lows.  And in January, the SEC is meeting and they may lighten the Mark to Market accounting guidlines put in place by FASB 157.  This could have a significant bearing on rates, potentially for the worse as it could benefit the stock market. 

An announcement like that from the SEC, or anyone in Washington for that matter, could cause a swift move in rates.  Thus allowing only those with loan applications already in process the best rates.  Interest rates are incredibly volatile and fluctuations that used to take months are now occurring in just days or even hours.  If you don’t have an application in process, you could lose out.  Now is the time to get with your mortgage professional.

To learn more about me, go to www.leemclain.com.

Thanks and have a great day.