Outer Banks Mortgage Rate Update 1-25-08 form Shane Cook
Published January 26, 2008 by Shane CookMany economists are calling this week a once in a generation occurrence. This is because the last time the FED enacted an emergency lowering of interest rates by .75% was in the mid 1980’s. This lowering along with a plummeting stock market sent rates to decade lows for Tuesday and Wednesday of this week. Since then rates have started to rebound upward after reaching what I believe is the proverbial bottom of the interest rate market. For highly qualified borrowers the Fannie Mae 30 year fixed rate hit 5% for roughly 2 hours on this past Wednesday, and quickly started to climb upward after that. Adjustable rates mortgage hit their lows Tuesday, and didn’t start to increase until roughly mid-day on Thursday. Today rates are still very attractive and should hold through the next week. They may even dip down a little again depending on the FED meeting scheduled for next Tuesday. Fed Chairman Bernanke has already said he will be lowering Federal interest rates again next week (see article 3 below.) Which could possibly take Prime rate down to 6.25% or 6%. I have listed several other headlines below for you to review. All of which are showing positive news for the real estate and financial markets.
*****Absolutely Huge News******** U.S. lawmakers are poised this week to approve measures that may boost demand for housing. An accord reached in Washington would temporarily raise the limit on the size of mortgages that federally chartered mortgage-finance companies Fannie Mae and Freddie Mac can buy to $729,750 from $417,000. This is part of the economic stimulus package hammered out by the Bush Administration yesterday. When this happens it will do wonders to help stimulate temporary sales and refinances for the properties just out of Fannie Mae loan amount range right now (roughly purchase prices of $525,000 or less). Currently any loan obtained over $417,000 requires a Jumbo loan that offers tighter guidelines, more documentation, and significantly higher interest rates. I expect this to get many of our “fence sitting” investors to jump off the fence, as this will only be a “limited time offer” so to speak. I will keep you posted on this as the exact details are still in the works (see article #2 below.)
Homebuilder Shares Set for Best Week Since 1995 on Signs Market Hit Bottom U.S. homebuilder shares are poised for their biggest weekly gain since 1995, as investors and analysts say the market for new homes may have hit bottom.
Stimulus Bill May Prompt $500 Billion in Home Refinancing, Barclays Says A proposed temporary increase in the limit on the size of loans eligible for purchase by Fannie Mae and Freddie Mac may lead to a surge in mortgage refinancing, according to a forecast by analysts at Barclays Capital.
Bernanke to Cut Rates Further, Faster as Concerns About Inflation Subside Federal Reserve Chairman Ben S. Bernanke has decided inflation concerns have faded enough to let him cut interest rates further and faster to keep the U.S. from tipping world economies into recession.
Shane Cook
Senior Mortgage Specialist
800-256-7887/Cell 252-207-2665
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All quotes listed below only require 10% down, and have no private mortgage insurance (PMI), for qualified borrowers. Quotes listed below are for 30 day locks. Add .125% of a percent for Interest Only.
Conforming: loan amount less than $417,000
Primary Residence and Second Homes
40 Year Fixed: 6.25% 0 origination
30 Year Fixed: 5.875% 0 origination
30 Year Fixed: 5.375% 1 origination
15 Year Fixed: 4.875% 1 origination
7 Year ARM: 4.875 % 1 origination
5 year ARM: 4.5% 1 origination
FHA 30 Year: 5.5 1 origination
VA 30 Year: 5.625% 1 origination
Investment Property
30 Year Fixed: 5.75% 1 origination
5 Year ARM: 5.25% 1 origination
Jumbo Loans: Loan amounts greater than $417,000 to $1.5 Million
Primary Residence and Second Homes
30 Year Fixed: 6.25% 1 origination
15 Year Fixed: 5.875% 1 origination
10 Year Arm: 6.25% 1 origination
7 Year ARM: 6.125% 1 origination
5 Year ARM: 6.0% 1 origination
Please call for custom quotes on Jumbo Investment Property loans and on loan amounts greater than $1.5 million. These interest rates vary greatly depending on loan amount, down payment, credit score, etc
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