Wednesday, April 30, 2008

Feds Cut Rates By Another Quarter Point

The Federal Reserve cut rates by another quarter point to 2%! What does this mean to Buyers and Sellers trying to refinance? Currently not a whole lot. Rate cuts tend to take a period of months to trickle down into the loan market. Though it may help short term rates, most of us are looking at a secure 30 fixed for the long run.

I have not seen the low rates of 2001 and the close ties to rate cuts that were obvious during that time period. I have been seeing loans take longer periods of time to qualify and get funding. For jumbo loans the rates are in the mid 6's which are really nothing too excited for the average home buyer or owner. Banks are a-lot more cautious with who they loan money to and are dealing with many loans that have fell through as well.

Those of you who are getting regular conforming loans under $417,000, these loans seem to be plentiful. I am still trying to secure one of these stimulus package or Conforming Jumbo loans. When I successfully refinance myself, I will pass my experience onward.

For loan inquiries please contact Mya Tran for a detailed analysis of your loan needs and tell her Alan sent you!