Mortgage rates continue to drop this week. The 30 year fixed rate ended at 6.125% with 0 points today. In June we were at our high of 6.875%. The economy is forcing the rates down in order to assist in the housing market. This has now become the perfect time buy your next home or refinance. House prices are low and mortgage rates are still at all time low.
Make sure when you are looking at mortgage rates, that the APR (annual percentage rate) matches the rate! If the APR is different, it could be there are hidden fees.
Yields on interest-rate futures fell as traders priced in higher odds of cuts in the Fed's target for the overnight lending rate between banks, which has been 5.25 percent since June 2006. September futures on the federal funds rate yield 4.93 percent, down 6 basis points. The yield fully prices in a half percentage point cut by Sept. 18.
Former Fed Chairman Alan Greenspan spoke in regards to the economy and said "The behavior in what we are observing in the last seven weeks is identical in many respects to what we saw in 1998, what we saw in the stock-market crash of 1987,''
Let's hope that Ben Bernanke can live up to the great Alan Greenspan!
Have a great night and always feel free to email me with questions or concerns about the mortgage industry!
Bill Nickerson
President
Emerson Lending
Acton MA
bill@emersonlending.net
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