Interest rates and Financial Market update

Fixed interest rates moved lower today. It is a lot harder to quote interest today versus a few months ago. The higher the credit score the lower the interest rate. The 30 year fixed rate is now at 4.875% for loans from $200,000 to $417,000 with a 740 credit score and a down payment of 10%. See the attached Mortgage Plans and Rates for more details.

As you are probably aware, Congress passed a $789 billion stimulus package intended to revive the struggling economy. The stimulus package is split 36% for tax cuts and 64% in spending and other provisions. "Combine this new spending and borrowing it will require with the trillion of dollars still needed for the banking system, and we are about to test the outer limits of our national balance sheet," The Wall Street journal said in an editorial on Thursday. We will know very soon how this will affect the mortgage market.

The following information was provided to me by Ralph Leach, Loan Officer, Ameristar Mortgage Corporation
Cell 414-202-8093.

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Sincerely,

Greg Cavaiani

gregc@responserealtors.com