If you’ve been on the fence about buying a home in the Tampa Bay area; you’ll want to read this news article about interest rates.
It’s hard to believe in today’s economic environment, but the overall Bond market, including Mortgage Bonds, are contending with the “I” word this morning…inflation…thanks to Fed member Frederic “Uncle Freddy” Mishkin.
Mishkin appeared on CNBC this morning, saying that “inflation could come to the forefront given all of the government programs”, and “once the economy recovers, liquidity must be taken out of the markets”…meaning, the Fed may need to rapidly hike rates down the road to control the potential of inflation.
Although rates are very attractive now, the picture may be quite different as we head towards the summer. Oil prices may be on the rise as we approach the summer driving season, some of the economic stimulus might begin to take hold, corporate cost-cutting measures could start to bear fruit, and the big enchilada…the Fed will no longer be a buyer of Mortgage Bonds. These are all ingredients in a recipe that will undoubtedly result in significantly higher interest rates this summer.
…… this wonderful opportunity at hand will not last forever.
We will be holding our next Tampa Real Estate Meetup Investor group, on Feb. 11th, 2009. We will address many current market conditions in the lending industry
Click here to see details
Here are some quick updates on how the mortgage industry will change your ability to buy a home in the Tampa Real Estate market. It’s not as bad as most people think! Although it can be confusing since things are changing every day!
Here are the changes for FHA loans: Compliments of Katie Hughes, Prospect Mortgage
FHA is requiring 3.5% down on all property types-Primary residence only
Max loan amount for FHA $270,050- Only 580 minimum credit score
Condos must be FHA approved, which I can tell you which ones are approved for FHA financing
Here are the changes to Conventional Loans
Conventional loans are requiring 10%down on all primary residences
20% down if it is a condo
20% down if it is an investment property
620 minimum credit score for a primary residence
Maximum loan amount $417,0000
Join us as we uncover what has changed and what is new in the Mortgage Lending Industry.
Guest Speaker, Katie Hughes, Sr. Loan Officer, Prospect
Mortgage, will guide us through the latest changes as our real estate market continues to evolve.
If you are looking to purchase, re-finance or sell a property, you don’t want to miss this very informative meeting.
Click here for details and info to register for the meeting this Tuesday!
Feel free to contact us at info@thetamparealestateinsider.com or visit our Real Estate Listing Search Website for all homes for sale in the Tampa Bay area.
Federal Reserve Board Slashes Fed Funds Rate
On December 16, 2008, the Federal Reserve slashed the target range for the federal funds rate to 0%-0.25%–a clear signal that Chairman Bernanke and other members of the Board will take all necessary steps to achieve economic recovery.
The press release announced that, in addition to the existing commitment by the Federal Reserve to purchase up to $500 billion of Fannie Mae and Freddie Mac mortgage backed securities and $100 billion of their debt obligations, the Fed will expand these purchase programs “as conditions warrant.” The Fed clearly understands that the key to economic recovery is restoring health to and confidence in the housing and mortgage markets.
Federal Reserve Press Release
Commentary by NAR’s Chief Economist Lawrence Yun
I asked Katie Hughes with Prospect Mortgage to give me her Home Shopping Holiday Bargain advice!
Here’s what she said about the Tampa Bay Housing Market:
Mortgage rates have dropped AGAIN and are at their lowest point in generations.
If you have been on the fence about buying or refinancing a home, now is the time to act.
Interest rates are at their lowest since the 1960s and home prices in some areas are at 2003-2004 levels. Add to that recent declines in energy prices and lower consumer interest rates, and you have a great holiday recipe for success.
In many markets, falling prices are bringing out buyers who have been waiting patiently to buy, and now they are scooping up hot properties.
Rates have been very volatile; and this great opportunity might not survive the holidays!
If you would like to get in touch with Katie send us and email: info@thetamparealestateinsider.com and we will let her know you are interested in getting a good faith estimate to see what you can qualify for.
See Also: Superbowl comes to Tampa! Things to Do
Just a quick update on the lowest mortgage rates we’ve seen in a long time! I was sent this today:
Conforming 30 yr fixed : 5.25%
Conforming 30 yr fixed: 5.0%
30 yr FHA rates: 5.125%
30 yr VA rates: 5.375%
JUMBO 5 YR ARM: 5.5%
JUMBO 7YR ARM: 5.75%
Here is what happened that caused mortgage rates to drop:
The mortgage industry just received a nice boost! The Fed is going to buy Mortgage Bonds. The Federal Reserve just announced that it would purchase $600B of Mortgage-Backed Securities (MBS) backed by Fannie Mae, Freddie Mac, and Ginnie Mae. This brilliant move by the Fed is designed to help increase the availability of credit, while lowering fixed mortgage rates. And this move is already lowering mortgage rates so far today as Mortgage Bonds are up a whopping 128bp and appear destined to retest the price highs of 2008.
In addition to purchasing debt backed by Fannie and Freddie, the Fed will set up a $200B program to support consumer and small-business loans. The Fed looks for the plan to create liquidity in the auto, student and small business loan market.
If you’ve been waiting to buy a home; now is the time!
Search homes for sale in Tampa at
or contact Rae at Prudential Tropical Realty 813 784 7744 for more information!
Fed Surprises with Deepest Cut since 1984
The Federal Reserve surprised everyone Tuesday with an emergency intersession rate cut of .75%, the deepest cut in the Fed Funds Rate since 1984. The Fed Governors are acting in direct response to recent reports that the country is on the brink of recession.
If you have credit cards, auto loans, HELOCs, or an Adjustable Rate Mortgage, the Fed’s decision to cut this key interest rate is great news. For long-term mortgage rates however, this could signal the beginning of the end for the lowest 30-year home loan rate borrowers have experienced since 2005.
Let’s look at the impact of a few recent Fed Funds Rate cuts and the corresponding impact to home loan rates to see what this could mean for you:Fed Funds Rate Cut vs Impact to Home Loan Rates
January to June 2001
Down 2.25%
Rose 0.10%
October to December 2001
Down 0.75%
Rose 0.45%
May to August 2003
Down 0.25%
Rose 0.78%
Rates are predicted to be cut again when the Federal Reserve meets at the end of this month. Many believe Tuesday’s action was taken because of a dramatic downturn in the stock market, where the Dow dropped 464 points, the worst single day drop since September 11, 2001. Since the Fed’s announcement, the Dow has recovered much of those losses but volatility is likely to remain a consistent theme throughout the week.
If you are waiting for long-term mortgage rates to fall further from here, don’t count on it. Your best chance to lock in the lowest mortgage rates since 2005 is now. Getting your application in process will allow you to capture a rate near all time lows and, with many experts predicting home values could continue to decline, waiting could kill your chance to capture a great rate if your home doesn’t appraise.
This is an unprecedented market and things are moving fast. Regardless of your current mortgage.
In light of these market movements please give us a call if you are thinking of buying a home in the Tampa Bay area.
Rae Catanese, P.A.
Prudential Tropical Realty
813-784-7744
email
Beautiful Seminole Heights Bungalow
Lowest Rates in 25 Months
We couldn’t have asked for a better Thanksgiving treat than the one we got on Monday: the lowest 30-year fixed-rate in over two years. That’s right. For those of you who have been patiently waiting, here’s your chance to save anywhere from $5,000 to $7,500 or even more on the mortgage financing you’ve been looking for. Do not miss this great opportunity to cash in on the lowest rates since October 2005.
Here’s why you should act now:
Monday saw the lowest 30-year fixed interest rate in over two years. However, each time this interest rate reached previous low points, both last year and earlier this year, it began increasing and didn’t stop, climbing over 0.50% in the months that followed!
Prudential Tropical Realty- Tampa
Rae Catanese, Realtor at 813-784-7744 or
email us.
Fannie Mae and Freddie Mac tightened guidelines, announcing new Loan-Level Price Adjustments. In the first quarter of 2008, most borrowers who have good credit, but have FICO scores below 680, will now be forced either to pay more points at closing or incur a higher interest rate.
The amount that a borrower could be forced to pay, even if they’ve never been late on a payment, could be as much as 2.00% in points or an interest rate that’s 1.00% higher than the going rate.
On a $250,000 home loan, a borrower could have to pay up to $5,000 in order to receive normal market rates! Borrowers choosing the higher interest rate, under the worse case scenario, would stand to lose over $7,500 in just the first three years of the loan.
Choosing to wait could cost you money both in the form of higher market rates and points. This could well be the greatest holiday present you could treat yourself to this year, but only if you act fast!
For Real Estate questions, or to get pre-qualified for a loan contact us.
Lower Fed Rate Means Opportunities on the Rise
For the first time in more than four years, the Federal Reserve cut its Fed Funds Rate, which directly impacts millions of American borrowers. And while this important decision has many implications, there’s still some debate among experts about what this means to the economy as a whole.
The Federal Reserve meets again in six weeks, and no one is certain how market volatility and inflation concerns will affect their future policy and decision-making. Bottom line: Take advantage of this opportunity while you still can. Call me right away.If you’re looking to capture a lower interest rate for refinancing or buying a home, this could be your best opportunity to do so. If you have an Adjustable Rate Mortgage, while this rate cut might help to improve your situation, now is the time to refinance into a fixed-rate loan.
If you have a Home Equity Line of Credit (HELOC) or credit cards tied to the Prime Rate, the Fed’s cut in the Fed Funds Rate just put a little money in your pocket.
Borrowers waiting for a lower fixed-rate mortgage may be waiting for a long time. The chart below clearly shows how Fed Funds Rate cuts do not translate into cuts in fixed-rate mortgages. In January 2001, the Fed Funds Rate was at 6% and 30-year fixed rates averaged 7.03%. By December 2001, following 4.25% in cuts throughout the year, home loan rates were actually up to 7.07%.
Overnight real estate rates hit flat spot
30-year fixed rate at 6.17%; 10-year Treasury yield at 4.64%Friday, August 24, 2007Inman News
Long-term mortgage interest rates were mostly unchanged Thursday, and the benchmark 10-year Treasury bond yield dipped to 4.64 percent.
The 30-year fixed-rate average held at 6.17 percent, and the 15-year fixed rate edged up to 5.79 percent.
The 1-year adjustable gained to 5.57 percent.
The 30-year Treasury bond yield was down to 4.94 percent.
Rates and bonds are current as of 7:15 p.m. Eastern Standard Time.
Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.
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