The Mortgage News Summit County Has Been Waiting For!

A message from the desk of Terrence J. Power:
Power Mortgage Corporation - www.powermort.com - 970-453-3997

March 18, 2009

Today the Federal Reserve Board announced that it is increasing the amount of mortgage backed securities that it will buy from $500 Billion to $1.25 Trillion dollars in an effort to further reduce mortgage rates and improve the housing economy and the economy in general.

The prices of mortgage backed securities rose over 120 basis points at the time this memo was being written.  The price moves in the opposite direction of interest rates.  The increase in price will result in a decrease in mortgage rates over the next several days.  Rates on 30 year conforming fixed rate mortgages could reach 4.5% or even lower.

This is the stimulus that everyone has been waiting for, and the intersection between low rates and low home prices.  Once the stimulus has ended there is little doubt inflation will return along with higher interest rates.

Those that can buy should buy, and those that can refinance should refinance.

Power Mortgage is ready to assist you in any way we can.  We still have in-house underwriting, super fast closings, and the ability to finance condominiums in resort areas.  Call us as soon as possible if we can help.  970-453-3997.

This entry was posted on Friday, March 20th, 2009 at 10:57 am and is filed under Community News, Market News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.