On November 26th I mentioned in my post that Treasury Secretary Henry Paulson made an announcement that the Treasury would buy additional mortgage backed securities from GSEs (Fannie Mae and Freddie Mac). To read more about that article click on Help For Main Street. As we’ve heard several announcements about help for our economy over that last 6 months, my main focus of Help For Main Street was the lasting affect of the announcement. With recent announcements we’ve seen pockets of opportunities, not lasting for more than a day or two.
Today, Thursday December 11th, 15 days later, we’re still seeing the benefits of the help from the Treasury. Mortgage rates have dropped to a four year low. We’ve seen the 30 year fixed no higher than 5.5% (5.625% APR) since the announcement. There has been a few days in the past two weeks when rates have dropped as low as 5% (5.126% APR).
The future of the mortgage market and Treasury announcements is unpredictible, thus making it important to be prepared to make a move now or to be prepared to make a move when it is necessary for your individual situation. The key to taking advantage of this amazing opportunity of low mortgage rates is preparation and education. If you are thinking about purchasing a house, these lower rates may help you afford more or make the price range you were thinking about more affordable. If you currently own a home and pay more than 6% on your mortgage, it is definitely worth inquiring about the possibility of refinancing.
To contact me today feel free to email me or call my direct line at 503.798.9183.