Mortgage Interest Rates Fall-For Now
September 28th, 2008
Over the past year, there have been numerous failures in the banking and lending industries. Even the government tried with it’s own feeble attempts to help borrowers with several failed programs such as Hope Now and FHASecure. Who would have thought that the government taking over Fannie Mae and Freddie Mac would actually be the first thing to help borrowers to begin to refinance and purchase a new home?
Since the takeover of Fannie and Freddie, interest rates have dropped nearly
3/4% in some instances. Today, you can find depending on your credit score and debt-to-income ratio and LTV, a 30 year fixed loan for around 5.50%. That’s nearly a 7/8% interest rate drop from rates just 3 weeks ago! A 15 year fixed rate is currently going for 5.25%.
Does this mean the housing market will now turn around? Hardly. No one knows what is going to happen in the future and in fact how well the government will run Fannie and Freddie. Along with that, there are still billions of dollars worth of option arm loans that will be resetting in 2009 and 2010. If rates do not continue to stay steady or even go lower, we will be right back where we were before the takeover of Fannie and Freddie. As for my own question about whether the takeover will help? Who knows, but it is a start.
Posted in FHA, Housing Recovery Act, Interest Rates, Loan, Mortgage, Purchase A Home, Refinance, Stimulus Package | 
Tags: billions of dollars, borrowers, Credit Score, debt to income ratio, Fannie Mae, fannie mae and freddie mac, feeble attempts, fhasecure, fixed rate, Freddie Mac, housing market, instances, interest rate, ltv, mortgage interest rates, option arm loans, takeover