low intrest rates

Mortgage Rates December 19th – Weekly Wrap Up

by steverussell on December 19, 2008 · 13 comments

in Gulf Coast Mortgages

Boy…What a week!

We started out really well, then the fed meeting results came out with the lowest federal funds rate in the history of the federal reserve at .25%. That’s right, the banks are now borrowing their money at .25%. At one point on Tuesday, I was quoting rates at 4.75% with no points and 4.25% with 1% origination. Can you believe that?!

Then the air let out of the balloon on Wednesday as bond traders got nervous and we are back to the low 5% range with no points. Try not to cry over a terrible rate of 5% (wink), but the volatility in the market is a

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Gulf Coast Mortgages

December 16, 2008 Uncategorized

Steve Russell Pensacola Mortgage Banker Primary Residential Mortgage Serving the Alabama Gulf Coast and Florida Panhandle Mortgage Market including Orange Beach, Gulf Shores, and Fort Morgan, AL as well as Pensacola, FL and the Florida Panhandle.   Steve Russell is a graduate of Vincennes University with a degree in Business Finance. After growing up in [...]

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Mortgage market interest rates are currently near or at all-time lows

December 15, 2008 Gulf Coast Mortgages

While the mortgage market continues to generate a lot of chatter in both the media and in Washington, interest rates are currently near or at all-time lows. If you or anyone you know are looking to take advantage of these low rates, let me explain why now is the time to act.

Lately there has been talk about the 4.5% 30-year fixed rate mortgage. Will it become a reality though? Right now, no one really knows. Homeowners who could benefit from a lower interest rate need to know that even if 4.5% becomes a reality from Washington’s actions, it would only be available to home buyers, not homeowners seeking to better their rate. If you need to refinance, you will be left out.

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The Chinese have a proverb: “May you live in interesting times.” And we are living through interesting times indeed.

December 15, 2008 Gulf Coast Mortgages

Whatever the political posturing regarding the rescue plan, a plan needed to be passed. Credit markets are frozen and banks are going bust every day. This is not totally because of “toxic” mortgages. This has a lot to do with FASB 157, also known as “mark to market”.

Each day, lenders must mark their assets to the marketplace. It’s like you having to appraise your home everyday and, if your neighbor was under duress because she got very ill, divorced, lost her job and was forced to sell her home quickly, she may have sold it super cheap. Now, does that mean your house is worth that super cheap price, too? Clearly not. Why? Because you are not under duress. You have the time to sell your home and get a more normal price, which more accurately reflects true market conditions. But “mark to market” does not allow for this, which creates a vicious cycle.

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Housing stats imply its time to buy

December 6, 2008 Keller Williams

Housing stats imply its time to buy According to a recent report from Global Insight, an economic and financial analysis forecasting firm, current housing statistics indicate that now is the right to time to buy. They claim that the U.S. housing market as a whole is undervalued by 3.8 percent. Global Insight analyzed 330 metropolitan [...]

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