Yesterday, Ben Bernanke gave every indication that the FED will lower rates at its next meeting. Most experts expect a 1/2 point reduction and as much as 1 1/2 points in total reductions by the end of March. Moreover, Mr. Bernanke alluded to the fact that the FED will not hesitate to intervene in between meetings if more negative economic indications develop. He was particularly focused on declining home values, ongoing liquidity issues and the jobless rate. Along with future rate cuts, Mr. Bernanke announced that the FED will auction an additional 60 billion dollars in 28 day loans over the next month to financial institutions. (Source: CNBC, WSJ)
Bank of America has acknowledged its intent to buy Countrywide Financial Services. (Source: WSJ)
On average, mortgage rates dropped from 6.07% to 5.85% over the last week. (Source: WSJ)
For qualified buyers, it just keeps getting better, but low rates and low home prices do not usually coexist for lengthy periods of time.
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2 comments:
Hi John, this is good news...they should've dropped the rate 6 months ago, instead of nickel and diming it to death. I actually have a nice 5.375 30 year fixed so I don't think it'll affect me, but I'll pass the word out to my friends ( some have 6.25 30 year fixed) and they could get some help....thanks for the site...it's informative! See you in the office....Jay-Lo
John & Kristen,
It's great to see fellow local bloggers with such pertinent and applicable posts. I found your blog by the link you inserted at your company site when browsing local real estate professionals for sourcing and networking affiliates.
Keep the posts coming, best wishes and continued success in 2008 and beyond!
~ Jamie Woods
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