At Any Rate

Useful Mortgage News…Mostly Fact: In January of 1985, 30 year fixed mortgage rates were more than 13 percent. By January of 2012, rates had dipped to under 4 percent. What’s happing right now with rates?  Even with slightly higher consumer borrowing rates, housing loans are still a bargain compared to past years and decades. Economist David Clark... "...certainly mortgage rates have gone up, but they're still in the neighborhood of 4 percent. By historical standards, that is low. If you look at 30-year fixed rate mortgage where it stood at the beginning of January, it was just under four percent at 3.95 percent. By February it had moved up to 4.38 percent..." Clark says by historical standards that rate is still low... "....it's because the Federal Reserve has started moving up short term interest rates. They have a federal funds rate that they set is at 1.5 percent now. It was at 0.75 percent this time last year. The reason they've done that is that they're concerned about inflation...." He says those Federal Reserve moves caused some sharp adjustments in the stock market. That also pushed up the long term rates. He says when lenders are providing 30 year loans they want to know what is happening with inflation. Clark says the moves by the Fed now are designed to keep inflation under control. Tip: Want to know where rates are on any given day?  Check the price of gas at your favorite intersection – there is a direct relationship between gas prices and inflation – CLICK HERE.  Or call us.  We’re always here to help…and put your business pedal to the metal!   Putin’s Interest Rate Woes Vladimir Putin proclaimed this week that Russia must get interest rates below 7% to solve the country’s housing problem.  We always thought that their housing problems were because half the country is living in poverty.  He solved that problem in the same speech – he ordered the minimum salaries to be increased.  But won’t artificially raising incomes cause inflation, thereby rising interest rates?  Maybe Putin can outlaw inflation in Russia too. Assets - How Much You Need to Buy a Home Think you need 20% of the purchase price to buy a home? Think again. This class will describe what an asset is and what is not acceptable for a home purchase. We also will discuss creative solutions for borrowers that are "asset challenged". We will provide handouts and be available for questions. Instructors will be John Easterbrook and Patty Aguon. John and Patty are seasoned Mortgage Loan Officers, experienced in all facets of the home loan financing. Sign up now. Thursday!  March 8th 6:00 PM - 7:00 PM 806 Bidwell St, Folsom, CA 95630, USA Sign Up Here!