Jan. 24, 2008 - Rates Drop!

Tuesday, the Fed had an emergency meeting and dropped the rate 3/4 of a point!  That is a huge, unexpected drop in an effort to try to avoid an upcoming recession. 

Will it work?  It is hard to say at this point.  Some economists say it was the right thing to do but others disagree.  Only time will tell.

Well, only one day later, Wednesday, mortgage rates dropped to a new four year low.  According to Bloomberg News, the average rate for a 30-year fixed mortgage declined to 5.31 percent.  This drop could encourage the millions of homeowners across the country who are faced with high rate ARMs to refinance and save money on a monthly basis.  The money that these homeowners would be saving could be used on other items, encouraging consumer spending.  This monthly savings could also be squirreled away for a rainy day, reinvested in the property through improvements, or used to pay down their mortgage loan at a more rapid rate.

If you are thinking of refinancing, I work with several of the area's leading lenders and can offer referrals to banks and brokers who have a proven track record.