My New Blog

Okay, I admit it...the current financial market has gone beyond the scope of my full grasp.  There are things that make sense to me and much more that I am uncertain of their long and short term effects.  So, for the latest update on how the market may be again changing real estate through lending, I rely on a professional in the field.   Recognize this deferment as a sign of strength - that if I do not know an answer I will find out from the appropriate sources.  I will not b.s. you with smoke and mirrors.  So below, please find some valuable insight from Michael Lappin at Stellar Mortgage.  His contact info follows so you can contact him for your loan or refinance.  Let a professional with integrity guide you through these uncertain times.

Here we go again, with the talking heads on financial news misinterpreting the impact of the Fed's actions on home loan rates.

Here's the scoop. What the Fed just announced is huge – they have committed to buy another $750B in Mortgage Backed Securities, and $300B in Treasuries.

 

But what does this mean and why do you care?

 

Their actions provide a demand for Mortgage Backed Securities, which should help keep a ceiling on home loan rates moving much higher in the foreseeable future. That's good news, for homebuyers who are seeing the bargains out there and understanding that now is the time to act. Good news for those who are ready to refinance too.

 

But an important distinction – this does not mean rates will move significantly lower. Depending on exactly which coupons the Fed purchases when they go shopping for Mortgage Backed Securities, their actions may keep a lid on rates, but not push them very much lower. And based on what they've been buying since the beginning of this year when they started their purchasing program – that is exactly how it has played out. 

 

Rates might go down, and we are watching them closely.  They might also go down in the short term (a day or two) and pop right back up, as we have seen before.

 

Present home loan rates are within inches of historic lows. What is keeping you on the sidelines from acting now to refinance and get some dollars back into your own pocket, where they belong – or moving forward to buy the home of your dreams, while it is still on sale?

 

If you have questions – call me. You know there's no pressure, but let's discuss options and see if there is something we should be looking at to improve your situation.