Juicy Estates: Mortgage Blog

South Florida Interest Rate Update…Talk Is Cheap

In the midst of water cooler talk of the Fed buying mortgage backed securities in an effort to push 30 year fixed rates to 4.5% rates actually ended the week worse by an 1/8 (.125%).   Even the worst jobs report the US has seen in 35 years couldn’t move bond prices higher.   Remember, as Bond prices move higher mortgage interest rates will move lower.

The Treasury engaged in a bit of system gaming with the irresponsible release of the hint that they may buy mortgage bonds in an effort to move mortgage interest rates significantly lower.  This release of this information included no definitive plan, no indication of who might qualify, or what the restrictions would be. Like many other recent legislative “solutions”, the restrictions might be very tight, with income limits set very low, and as a result, helping very few people. Remember, it may make sense for you to act now, and take advantage of current historically low rates…with the possibility of refinancing should rates decline further.

This entry was posted on Monday, December 8th, 2008 at 12:12 pm and is filed under Interest Rate Updates. 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.

1. rileysmith said at December 10th, 2008 at 8:24 am

   James:
   Beautiful Site, Love It! I am excited to have more content to put on the The Real Estate Coconut.
   And I like how you inserted the TV clips into this post. You have to teach me how to do that!
   Congratulations.

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