The FED acted again this morning, slashing the Federal Funds rate by .75%! This is the largest cut since 1984! This comes during a time of great turmoil in our economy. It seems ironic that the mortgage industry is benefiting from a mess that they greatly contributed to! However, this is much needed. Rates have come out today and are 5.50% and ARMs are in the 4's! Keep in mind the Federal Funds rate is the interest rate at which private depository institutions (mostly banks) lend funds at the Federal Reserve to other depository institutions. This isn't a direct cut in prime or mortgage rates, but it factors into the equation!
We have seen some activity pick up here in the Columbia area and hopefully this just adds fuel to the fire. Refinances are way up and buyers are even starting to come out of the woodwork. This is no doubt a sign they want to take advantage of the extra buying power they will have! A buyer's market and low rates are quite the combination!
As always we will keep a close eye on rates and the market. Be sure to check back to our blog or http://www.pmg-inc.net/ for updates!
Brought to you by:
Professional Mortgage Group, Inc.
"Your Columbia, MO Mortgage Broker"
Tuesday, January 22, 2008
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