Rates Plunge !!
 Nov. 26 Rates plunge
U.S. mortgage rates plunged by the most in at least seven years yesterday as a Federal Reserve pledge to buy $600 billion of debt succeeded where seven cuts in the central bank’s benchmark rate had failed.
The average rate for a 30-year fixed mortgage fell to about 5.5 percent last night after starting the day at 6.38 percent.
It was the biggest one-day drop in at least seven years, Today, the rate is “bouncing around” between 5.63 percent and 5.9 percent.
Home resales have hung-up because rates are high and because mortgage money has been scarce. The Fed’s move may hasten the day when we finally find a bottom.
‘Rates Are Going Down ?’
“Instead of buying stocks in stupid banks, the government finally is going to make a move to clear assets from the market.”
Rates for a fixed rate mortgage with no fees or closing costs tumbled to as low as 5.50 percent from about 6.25 percent.
"Refinancing Gets Lift"
Homeowners who have enough equity to refinance their existing mortgages will get a boost as well.
You’re going to see an immediate impact on people who can refinance, taking their 6.5 percent interest rate to 5.5 percent or so. That can put $200 +, a month in their pockets.”
‘One-Time Jolt’
The Fed’s move was a “one-time jolt” that should have lasting effects.
You don’t see many days when one thing moves rates like this.
Hopefully we'll see a pickup in demand for housing The market right now is not about rates, which are affordable, but about a supply of homes that is very high. The market won’t turn around and prices won’t stabilize until supply and demand become more normal.
Business Introduction !!
Many Siskiyou County Realtors and Brokers I already know and have worked with in the past. There remains a number of you that I havn't had the pleasure to work with.
This newsletter will be comming to you on aproximately a monthly basis. It's intended to introduce myself to those of you that I havn't worked with and to stay in touch with everybody.
There are many challenges in both our industries ( Real Estate) and the Mortgage business, however there is Money out there to be borrowed and loans being closed every day, contrary to what your hearing in the media.
The articles I'll be bringing to your attention will be, current conditions in the Mortgage industry, which will provide options for your buyers, regarding good rates, new programs and reliable alternatives.
Please call for a up to the minute quote or to discuss any challenging scenarios.
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