Mortgage Rates Drop to Best Levels of the Year

INTEREST RATES CONTINUE TO FALL

Long term interest rates continue to improve and have now surpassed their best levels of the year.　 In fact, most 30 year fixed loan scenarios including FHA and VA loans are well under 5.000%!　 As long as the overall economy continues to sputter along, we will see rates hold steady and/or continue to improve.　 It's important though to remind everyone that the opportunity for these rates could change in an instant.　 With so much improvement over a relatively short period of time, oftentimes the reversal to higher rates happens very abruptly.　 Either way we look at it, rates are very low and now be a great time to not only buy a home but refinance the one you might already have.

In the big picture, the Feds continues to play a large role in the real estate recovery.　 Last night, the Financial Reform Bill was finally reconciled between the House and the Senate.　 The final draft includes a Consumer Financial Protection Agency which will ultimately be responsible for monitoring banks for mortgage lending as well as credit card abuse.　 In addition, the Home Buyer Tax Credit extension through September 30^th was shot down last night.　 It was part of the larger Jobs Bill currently under review by the House and the Senate.　 The issue with the Bill isn't so much the Tax Credit but instead the potential $33 Billion dent it will put in our ever growing deficit.　 The Bill is designed to extend unemployment benefits for people out of work more than six months.　 While the Bill continues to bounce around Washington D.C., the President made it clear that he will continue to push this Bill through Congress.　 More on that to come later next week...

In the meantime, if you need anything real estate related, feel free to contact our team. Have a great weekend!