“If you don’t like what you see, wait five minutes.” It’s a quote usually about the weather, however, in this case it applies perfectly to the economy and mortgage interest rates. After another turbulent week last week we are waiting to see the January retail sales report on Wednesday morning. Also, the Fed cuts should begin to take effect within the next 4-6 weeks and the economic stimulus package should also bare results as those who qualify get there tax rebate checks. In the face of all that is supposed to repair the economy and get it back on track are the economists and experts who fear inflation and investors that are not so sure about any of this as indicated by the wildly fluctuating markets.
There is a provision, which could prove to be very positive for the real estate and mortgage lending industries, included in last week’s economic stimulus package that passed a vote in the Senate. Any loan originated between July 01, 2007 and December 31, 2008 may be purchased by Fannie Mae and Freddie Mac, as long as the loan amount does not exceed the higher of $417,000 or 125% of the HUD median home value for the area up to $729,750.
The housing slump is expected to continue through 2008 as a result of excess inventory and less consumer spending. Again, this represents a significant buying opportunity in real estate in many areas of the country and it looks like the future jumbo limit could be $729,750.
Recently The David M. Damare’ saved a client over $45,000 in interest on a $200,000 loan over 30 years.
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Stay tuned and stay in touch with your mortgage professional. Thank you for the opportunity to serve you and your clients. David. 919.851.0999