Sunday, August 21, 2011

LOW RATES DUE TO SHAKY ECONOMY

It is amazing to me how much bad news continues to come out each day about everything from the economy to the housing market, and job market. Here's a bit of good news. The interest rates were supposed to be climbing along with gas prices by the beginning of summer, yet neither happened. In fact, the interest rates have dropped, and the Federal Reserve has promised to keep the Federal Funds rate at 0% for 2 more years. This means that most variable rate mortgages ( home equity lines of credit, commercial loans ) are going to stay low for at least 2 more years, too. Mortgage rates are not based on the Federal Reserve interest rates, but they are based on the sale of treasury bills, economic news, and other factors that effect the stock market, as well. With the mortgage rates at or near their historic lows, buyers and homeowners need to take advantage of them now. They will not stay this way for long. I have seen mortgage rates as high as 18%! Believe me, enjoy them while they last.

Andy Williams
President
Abacus Regional Mortgage
484 695 5972

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