Posted by admin on December 11th, 2007
The Feds are looking to cut rates to stem the rising credit crisis. I am guessing that this will lower interest rates by 50 points which will put the rate at 4%.
For those who read my blog dated Oct 19th below know that when the FED cuts rates you will see an immediate reduction on all Prime Credit (Home Equity Line of Credits, Credit Cards) and short term ARMs (Adjustable Rate Mortgage) based on the LIBOR index. This is good news.
The Feds have increased rates 17 times from 2005 – 2006. Now that inflation is in check (due to Consumer Spending and Jobs) and the current credit crisis, the Feds are looking to cut rates to entice consumers to start buying again. We recently had two rate cuts to get us to 4.25%. So expect the FEDS to do what is right
Posted by admin on December 11th, 2007
Looks like help is on the way from the government. With this being the beginning of the political season, the spin has begun from your favorite political action figure. Hillary and Edwards have a solution to the mortgage crisis. Now Obama has announced one as well. But the Bush Administration is going to top them all. On December 6th the administration announced a program that will FREEZE for 5 years certain subprime mortgage products to combat the rising foreclosure crisis. Bush to talked in broad generalities, as per usual, with Treasury Secretary Henry Paulson and Housing and Urban Development Secretary Alphonso Jackson provided the mental heavy lifting.
So what does this mean to you? Well if you currently own a home that is slated to increase your mortgage payment within the next year (due to having a subprime or Adjustable Rate Mortgage Note) you may be eligible for this program. This is great news for many borrowers, but others may still be left out in the cold. The time is now to reach out to real estate professionals who are certified and understand how you can benefit in this changing environment.
