March 20, 2009

Mortgage Rates to be Impacted by Trillion Dollar Infusion of Cash

Posted to Steve Randall

While the country’s attention has been focused on the executive bonuses paid to AIG officials, an unprecedented injection of one trillion dollars has been authorized by the Federal Reserve in order to assist a national housing market that continues to languish. While political pundits argue of the overall effect of this huge injection of funds, the intent is clearly aimed at lowering mortgage rates so that more people can afford to buy homes with monthly payments they can afford.

Fannie Mae has reported that rates last week have already dropped from 5.03% to 4.98% which is approaching the low this year of 4.96% on January 15, 2009.

If you have been sitting on the sidelines waiting to buy a home, then a lower interest rate would likely be of interest to you as it lowers the overall cost of purchasing a home. With the $8,000 tax credit you could add substantial equity to your purchase. Others who are watching rates to see how much lower they can go predict that we are now close to the bottom and future drops will be small with the probability that rates could go higher when the pent up demand for homes hits the market in the months ahead.

Unemployment, job security, the general economy are still impacting consumer confidence and keeping some on the sidelines. The fact remains, however, that real estate purchased now is greatly discounted from its highest values in 2006. We also know that real estate purchased now will make buyers look like geniuses in the future when property values again begin rise.

Our website will give you a complete list of all homes for sale in Northern Utah - here you can search for the most recent listings on the MLS.

Posted By: Steve Randall



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