I want to wish you all a very Happy and Healthy New Year. I cannot believe that the year 2007 is over so quickly. I look back over the year and wonder where it went. If you are thinking about doing anything with real estate this year, call me and I will be glad to help you. I believe that real estate is what keeps all other businesses thriving. If houses are being sold, there are many people involved in that transaction. If a new home is built that puts a lot of people to work; bankers, mortgage companies, lumber companies, builders, carpet makers, tile makers, painters, plumbers, heating and air workers, realtors, landscaping and on and on. Just sit in a house and think about all the people involved in getting the house completed. Buying land has always been a passion of Americans and foreigners that come to America.
Happy land hunting! Keep America strong!
Monday, December 31, 2007
Tuesday, December 11, 2007
Borrowers Get Year-End Gift from Fed
The Federal Reserve lowered interest rates today for the third straight meeting of the FOMC. What does this mean? Well, if you're looking to capture the best home loan rates, you need to act now. For those with an application already in process, you should probably lock your rate as soon as possible. And, for anyone who has yet to begin a loan application, what are you waiting for?
Rate Hikes on the Horizon
Despite this latest cut from the Fed, rates for many borrowers could actually increase soon. Why? Because Fannie Mae and Freddie Mac have recently announced 2008 Loan Level Price Adjustments (LLPAs) that are already starting to show up on lenders' rate sheets. LLPAs are automatic “penalties” based on credit scores, which tack on costs in the form of points or higher rates for most anyone with a FICO less than 720.
Back to The Fed
But, let's get back to the good news. The Fed cut the Federal Funds Rate, an overnight lending rate that banks charge each other and which influences the amount of interest consumers pay for various types of debt, such as credit cards, home equity lines of credit, and auto loans.
Since September 18th, the Federal Funds Rate has gone down 100 basis points. If you have a loan that is tied to the Prime Rate, this means your rates have been lowered a full point. But, for those seeking to obtain new financing, you must act now to take advantage.
No Time to Wait
Following each of the last two interest rate cuts by the Fed, home loan rates jumped higher a couple of weeks later. Remember, lower short-term rates are inflationary by nature, and cause consumers to spend more money. Because of this, long-term rates tend to increase as bond holders hate inflation and command higher rates as a result in order to protect their investments.
Because of these pressures and the upcoming Loan Level Price Adjustments, interest rates are going to rise. You need to get with your mortgage company now in order to secure the best deal you may see for some time.
This information prepared by
Clark Schafer, Security Savings Bank
Sunday, December 2, 2007
Lowes Knows
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