This information just had to go out. The rates are so low right now that it will not last. Lock up your Purchase and Refi rates at 4.375-4.5% for both Conventional and FHA, because it wont be around for long.
Reasons why we are seeing these low rates and why it wont be around for long:
– If you remember few months ago The Federal Reserve bought $1.1Tillion in Mortgage Backed Securities MBS (loan pools) from the market to support the liquidity as part of TARP. These securities are 5% and below yield so it is my belief that the reason that the government is influencing the rates lower is to be able to dump this investment of $1.1trillion back to private investors. When MBS has 5% return and the market rates are 4.375% that mean that government can sell them at a Premium which means profit for them. Another reason it can sell have enough liquidity to sell all it has because current buyers are happy at 4.375%.
– Rates are needed to be low at this time due to the $8000 credit expiration and the economy is still weak. With low rates means low payment so people can purchase and support the housing market.
So take advantage of super low rates and 5-10 year low prices. Contact your lender or call Maria (310) 654-3010: People who have equity are cashing some out to have enough down payment to buy another. It is these types of markets you need to grow your RE investments. Call me and i will give you more ideas amd directions to my lender.