Juicy Estates: Mortgage Blog

30 Yr Fixed Rates Below 5%…Again!

As a result of the Fed’s manipulation of the mortgage backed securities market coupled with international appetite for U.S. Treasury obligations conforming 30 year fixed rates have fallen below 5% again.

My fear is that both the public and real estate professionals across the nation have become accustom to conforming interest rates in the 4% range.  When the government stops buying mortgage backed securities in an aggressive manner rates will return to levels not seen since early 2008 and many buyers will have missed a great opportunity.

Jumbo rates have also fallen and with just a 20% down payment rates are now in the high 5% range.  This biggest challenge I see for those buyers of luxury properties in South Florida are down payment and reserves  requirements both of which have been relaxed in recent weeks.

The planets are aligned but they won’t stay that way for ever.

This entry was posted on Friday, September 11th, 2009 at 7:00 am and is filed under Home, Interest Rate Updates, Mortgage News. 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.

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