Mortgage rates are driven by the mortgage-backed securities market or what I refer to as mortgage bonds. This is a free market just like stocks or US treasury bonds, so individual banks aren’t waking up every morning and deciding, “I think we will offer 6% today!” We all get the money from the same places so what the mortgage bond market does effects us all.
This week Fannie Mae and Freddie Mac saw an unprecedented run on their stock. These two companies guarantee the vast majority of mortgage bonds out there, so foreclosures and declining home values hit them extremely hard. Normally this would be time for extreme panic in the market, BUT most experts say that the government will not let Fannie or Freddie fail.
Some comments were made this week by government officials implying that Uncle Sam would help Fannie and Freddie if needed. This is a tremendous help to the mortgage market’s stability because it gives investors more assurance about buying the bonds.
30 Year Rates are averaging 6.00% right now.
My 30 Day Prediction: RATES WILL DECREASE
This is my opinion only and you should not make a decision about locking or floating your interest rate based on this only. You should speak with a licensed loan officer about your particular situation.
GONE. The only way to buy right now without any down payment is with some time of down payment assistance. FHA loans are back in the spotlight!
NEWS FLASH: Fannie Mae and Freddie Mac just cancelled all 97% financing!! That leaves FHA and well… FHA!
BIG NEWS!! As of July 1st, Fannie Mae and Freddie Mac (conventional) stated income loans are changing to minimum 30% Down and a minimum credit score of 730! OUCH! NO DOC loans are no longer available in N.C.
PMI companies are no longer offering mortgage insurance for cash-out refinances on non-owner occupied properties. If you own investment property and are looking to get some cash, you are now stuck with 80% loan to value.
FORECLOSURES are everywhere! Call today to get pre-approved to buy a great investment property and build your net-worth. There has never been a better time to invest in real estate!
For more details contact?Olan Carder Myers Park Mortgage Direct: 980-721-7478 [email protected] www.mycharlottelender.com
Information is for the Charlotte Metro area which includes Fort Mill, Tega Cay, Lake Wylie areas.