Posts Tagged ‘House’

The Federal Reserve recently announced that it intended to keep “interest rates” low through at least mid-2013. This unprecedented statement shocked the markets and helped drive mortgage rates down to match historic lows. As investors digested this information, many concluded the Fed is essentially stating that they believe our economic growth will remain stagnant for some time. Although the markets appreciated the transparency of the Fed’s statement and assurance that lending rates will remain low, it was a sharp contrast to prior predictions that our economy would be at a healthy growth rate by the end of 2011. The acknowledgement that our economic recovery has been “significantly slower” in the first half of 2011 than previously expected was more in line with what many on “Main Street” have been saying all along.

How Will this Decision Impact Mortgage Rates?

There are two interest rates that are controlled by the Federal Reserve – the Fed Funds Rate (a lending rate at which banks with deposits at the Federal Reserve lend money to other banks overnight) and the Discount Rate (the interest rate that an eligible depository institution is charged to borrow short-term funds directly from a Federal Reserve Bank). Both of these are very different from mortgage rates. A mortgage rate can be in effect for 30 years while a rate set by the Fed can change from one day to another. Therefore, this recent statement by the Fed does not guarantee that mortgage rates will stay in current ranges until mid-2013, only that it is likely short term rates will remain at current levels for the next two years (home equity rates, car loan rates, credit card rates, etc.).

Read the rest of this entry »

My City Creek Team, You guys just might be the best all-around mortgage team there is. Thank you for all you do. Love the way you do business and look forward to many more years. – Bryan Hurd RE/MAX Results

I heard a quote by Warren Buffet that said, “Be greedy when others are fearful, and fearful when others are greedy.” Thinking about the current Real Estate market we are in, one cannot pass up the incredible opportunity their is to purchase a home. With historically low interest rates and plenty of homes to choose from, NOW IS THE TIME! If you, a family member or friend, have been contemplating purchasing a home, we’d love the opportunity in assisting you or a loved one into the home of their dreams. I came across the following article written by Steve Harney, a mortgage and real estate professional that makes us realize the value in becoming a Homeowner. Enjoy the read!

“There seems to be a long held American belief currently under attack. For over two hundred years, homeownership in this country was a desire of almost every American family. Recently however, more and more people have been pontificating on the fact that owning your own home should never have been held in such high regard.

Read the rest of this entry »