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.

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.

Credit Crisis & Real Estate Markets Report
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!

Tampa Bay Area Attractionsclick here to see my photo album

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

www.TampaBayDwellings.com

or contact Rae at Prudential Tropical Realty 813 784 7744 for more information!