Last 10 days of March - Feds to the Rescue

The Feds are doing everything they can to jump start the housing sector of the economy. They announced today they are allowing Fannie and Freddie to hold MORE mortgages then previously allowed. They are also allowing banks and investors to swap mortgages for cash. They also cut the Fed Rate by 3/4 of a point. While this raises rates when the cut occurs, it generally has the effect of lowering rates over time. We're still not at the 4 year low we hit in rates in October 2007 but we're getting there slowly. The lenders are raising loan qualifications. 100% loans are still available for the very strongest buyers. Though not true for every borrower, a 3% down payment is becoming the norm for a large number of buyers.

Middle March Madness or Stability ?

The Federal move to create $200 Billion in monies for large investment firms and banks to lend short term has provided a nice stabilization point. Continue to watch for volatility in the mortgage marketplace as presidential election new, congressional stopgap programs and company financial reports continue to affect the market.

Market Update - Early March 2008

Rates continue to be slightly volatile, though historically low. We had a four year low about four weeks ago! Rates are up slightly from that. Although some 100% loans are available for home purchases, we are encouraging a small down whenever possible. Considering the amount of foreclosures on the market and a recent historic low in rates, the best combination for the buyer is a competitively priced house with a small down payment. Happy House Hunting!