As you may have read, the Fed has been cutting the Fed Funds rate, which is the rate that the banks are able to buy money at. What does this mean to you as a consumer?
As history has shown, a lower FF rate has meant lower mortgage rates. When we got to the office yesterday morning, 30 year fixed rates were .25% LOWER than they were on Friday! That means that right now that if you qualify, you can get a rate in the 5’s on a 30 year-the 15 year fixed rate actually flirted with 4.875%!!! for a little bit. In fact, you could probably still get that rate with by paying a small discount fee to the lender!
If rates continue to go this way, I think we may be in for a refi boom-not on the grand scale of 2003/2004 but it would be an opportunity for people that missed out the first time, as well as people that are in ARM’s to move into a fixed rate.
As always, if you want to discuss your situation, please feel free to contact me. Have a great week!
Craig Pollard is a mortgage professional and owner of Texas Mortgage Team. He specializes in the Dallas Fort Worth area and is a frequent voice on Texas Home Central’s blog. Craig can be reached at CPollard@Texasmt.com or 972-317-9900
This entry was posted on Wednesday, December 5th, 2007 at 5:40 am and is filed under Home Buyer, Housing Market, Money Matters, Mortgage, Refinance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.