Feds Lower Rates by Rich Hebert of Lending Edge Mortgage

Rich Hebert Vice President Lending Edge Mortgage Phone: 817-485-4155 Fax: 817-849-8849 [email protected] www.richhebert.com

Fed Lowers Rate by .25 Point – Again 12/11/2007 The Federal Reserve cut its Fed Funds Rate again for the 3rd straight time.  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 has said when it meets again, their bias may be to continue to lower rates and try to hold off any signs of recession.  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 know is a great time to buy, Rates are at 30 year lows again! 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. The chart below clearly shows how Fed Funds Rate 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. Rich Hebert Vice President / Branch Mgr. Lending Edge Mortgage 500 Grapevine Hwy. Suite 402 Hurst, TX 76054 817-485-4155 Office 817-849-8849 Fax 866-536-9299 Toll Free [email protected] www.richhebert.com