The New Year has been good to mortgage interest rates so far. Rates are hovering at 5.00% these days. This is just the beginning because the Fed just started buying mortgage papers from Fannie, Freddie. Today the Feds bought $10.2 billion worth and they have a target of buying up to $500 billion by the middle of 2009.
Here is a chart showing how far rates have fallen since last September:
It may be a good time to refinance your loan, but be aware that you must have some equity in your home. We’re turning away a lot of people due to lack of equity. However, the exception is for those who qualify for a FHA streamline refinance, which doesn’t require an appraisal.
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on Feb 4th, 2009 at 3:52 am
Key question is, is this the bottom?
on Feb 7th, 2009 at 1:33 pm
It’s really hard to say if this is the bottom or not. As you can imagine only time will tell.