December 18th, 2008 5:35 PM by BILL WILBANKS
Rates dipped the last couple days to historic fixed rate lows in the high 4's and though they knee jerked back up in the last 24 hours by about .25% to around 5% on a 30 fixed, that's still great and we can have hope of lower horizons finally depending on our Uncle (Sammy).
It wasn't the Fed FOMC rate cut to 0" to .025% on the overnight rate. It was the promise of the Fed's comment that they would be buying up as much as $660 Billion (with a "B") in mortgage backed securities from Fannie and Freddie and the subsequent loosening of lenders willingness (maybe, we can only hope) to make mortgage loans again because they may have someplace to sell them. That was good for the long rates so far though it does nothing to address the much tightened lending standards, Mortgage Insurance issues and the backlog of homes on the market in the short run.
Yes it has kicked up some refinancing dust in the last few days and as usually happens folks don't move on it fast enough thinking "It will go lower." What happened...it went up 0.25% in rate since yesterday. Be careful, but not greedy. The current rate after the bump today is 2.25% below the rate I got on my first home in 1974 which was 7.25% (I know). Forest for the trees folks...
Bill Wilbanks, Owner
Orlando Mortgage Masters