Attached is my weekly rate update.
Yesterday, the Senate approved, 81-16, an amended version of the Economic Stimulus Plan, which you can read by clicking the link below. Dallas Fed President Richard “Loose Lips” Fisher was speaking in Mexico City and mentioned inflation rising. Remember, if inflation is an issue, mortgage pricing will respond by increasing rates. As a result, this week interest rates are up about a .125%. The good news… we are still at 40 year interest lows!!
Part of the Economic Stimulus Plan is for to increase conforming loan amounts from $417,000. What’s this mean? For places like Coachella Valley, who have large inventory over the $417,000 price threshold, and for loan amounts between $417,000 and $625,000 now will be considered conforming loans and will decrease by 1.25%!! On a $625,000 loan amount that means a decrease by $505.06 per month on a 30 year fixed and $585.94 per month for a 5 year interest only!! THAT’S A BMW PAYMENT!! Check it out, do the math!! Now’s the time to get buyers off the fence so show them the money! Higher-end homes will be selling and I WANT to be doing your loans!!
Call me to find out how I can help your clients buy or refinance their home. I’m NEVER too busy for ANY of your referrals!! Make it a great weekend!
Click to see the Economic Stimulus Plan http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.05140: