******Recent article sent to me by Rich Hebert of Lending Edge Mortgage. This is a great time to be a buyer in DFW!!! ***********
Fed Lowers Rate by .50 Point - Means Opportunities on the Rise
For the first time in more than four years, the Federal Reserve cut its Fed Funds Rate. And while this important decision has many implications, there's still some debate among experts about what this means to the economy as a whole. The Federal Reserve meets again in six weeks and no one is certain how market volatility and inflation concerns will affect their future policy and decision-making. Bottom line: Take advantage of this opportunity while you still can. Call your customers and let them know that rates are lower so right now is a good time to buy. If you're looking for a lower interest rate for refinancing or buying a home, this could be your best opportunity. If you have an Adjustable Rate Mortgage, now is the time to refinance into a fixed-rate loan. If you have a Home Equity Line of Credit (HELOC) or credit cards tied to the Prime Rate, the Fed's cut in the Fed Funds Rate just put a little money in your pocket. Borrowers waiting for a lower fixed-rate mortgage may be waiting for a long time. Fed Fund cuts do not translate into cuts in fixed-rate mortgages. In January 2001, the Fed Funds Rate was at 6% and 30-year fixed rates averaged 7.03%. By December 2001, following 4.25% in cuts throughout the year, home loan rates were actually up to 7.07%. Yes, we may experience some temporary improvements in rates in the coming weeks, but the markets will remain volatile as long as inflation and recession are a possible threat to the Federal Reserve's long-term economic policies If you're looking to refinance or buy a new home, call me. I will show you why waiting can cost you a lot of money. Contact Rich at [email protected] or visit his website at www.richhebert.com