The mortgage industry received some unexpected and exciting news this morning. The Fed has announced that it will purchase $600 Billion worth of Mortgage-Backed Securities backed by Fannie Mae, Freddie Mac, and Ginnie Mae. This will increase the availability of credit and therefore lower fixed rate mortgages. We have already seen this take place in the Mortgage Bond Market as rates are currently as low as they have been at any point in 2008. Conventional 30 year fixed rates are as low as 5.375% with 0 origination points and VA/FHA are close to the same.* In addition to the purchase of Mortgage-Backed Securities, the Fed will also allocate $200 Billion to create liquidity in the auto, student, and small business loan markets. These announcements will certainly make financing more attractive to those in need as interest rates are already dropping.
Please contact us if you would like further information or if you have been considering refinancing. The time to act may be now!