I posted on January 13 and encouraged home owners to take the advantage of lower interest rates. Now, the picture looks even better, with the Fed Emergency rate cut this Tuesday, January 20, the 30 year fixed rate had dropped to 5.75% from 6.375%. With the real numbers at work, a $600k loan will save $241.79 monthly.
All the economic fear, stock market plumage are due the the sub prime crisis. Now, Uncle Sam came to the rescue. Although we don’t quite know how this will help the families who are in trouble, but we know for sure that whoever bought the house in the past three years with 6 point and above rate on the mortgage now have chance to change that and improve their financial situations.
For overall forecast of 2008, we were only 24 days into the New Year, but in the 15 trading sessions, Wall Street had a correction of more than 1000 points, everyone and everywhere hear the “R” word. In fact, we really don’t know is the crisis being over yet, big banks and lenders’ write-offs will not come clear until probably later this year?
By then, say if the market stabled, we’ll probably see higher interest rates.
Please give me a call or write me an email if you have any questions of the market and mortgage rates.
408.996.8100 x 316