SHARP DECLINE IN MORTGAGE RATES FUEL HISTORIC LEVEL OF RATE LOCKS

On Wednesday, November 26, Secretary Paulson announced that the Fed will purchase up to $100 Billion in direct debt of Fannnie Mae, Freddie Mac and Federal Home Loan Banks and buy up to $500 Billion of Mortgage-Backed Securities.

With this news, the spread between Treasury bonds and mortgage-back securities narrowed significantly and fueled a sharp decline in mortgage rates.

So many customers who had been on the sidelines got into the game and locked their rates on refi's and new purchases. So much so, that many lenders announced that they reached recording breaking milestones!

Don't be a benchwarmer, get in the game now while rates remain historically low. Mortgage funds are available; we have a variety of programs to suit your specific needs. Call Michele at 913-642-3334 or email me at michele@wantinsight.com for the most current loan information.

Michele "MAC" A. Cole

913-642-3334

www.wantinsight.com

When the Feds cut rates, will mortgage rates go down to?

When the Feds cut rates will interest rates go down??

Previously, the Federal Reserve has lowered the Fed Funds Rate by 0.500%. In response, mortgage rates go up, not down.
This surprises a lot of people when we tell them that.
Remember: the Fed Funds Rate and mortgage rates are not related. When the Feds "cut rates", it's working on an overnight interest rate between banks. By contrast, mortgage rates are based on long-term securities between bond market traders.
When the Feds cuts the Fed Funds Rate, it is meant to stimulate the economy and that makes inflation more likely. Inflation, of course, erodes the value of the dollar and, therefore, the value of mortgage bonds.
This is why mortgage rates have gone higher after each of the Federal Reserve's four most recent rate cuts. The bigger the cut, the more the increase to mortgage rates.
Call or email me michele@wantinsight.com anytime. I am happy to serve you.
God Bless!

Michele "MAC" A. Cole
www.wantinsight.com