Mortgage Market Update:
The United States Federal Reserve pushed the federal funds rate closer to zero percent in late December in a move to loosen up credit markets and stimulate an economic recovery. As a result, mortgage rates dropped to their lowest mark in recent history with conventional 30-year fixed-rate mortgages reported in the low five percent range. This dramatic move has increased lending activity across the country as home buyers and home owners take out new loans to purchase or refinance.
According to the National Association of Realtors (NAR), existing home sales activity was down 8.6 percent in November as the market reacted to news on Wall Street. However, real estate markets across the country will likely see increased activity in the months ahead as more people take advantage of today's low rates and larger inventories.
NAR is currently reporting an 11 month supply of existing homes for sale, and expecting annual home sales of just under 4.5 million for the year ending in 2008.
Finance Q and A:
Q: What's the best way to raise a credit score when applying for a mortgage?
A: Your credit score is a composite snapshot of your credit history, and is not likely to raise much in a short period of time. Generally speaking, you want to make sure you pay your bills on time, keep outstanding debt levels to a reasonable amount for each account, and avoid closing accounts you've successfully paid-off and managed. Don't lose hope if you have less than perfect credit, there are still good loan programs out there for responsible borrowers. Contact your mortgage planner today to learn which programs might be right for you and take advantage of today's low interest rates!
Tip of the Month:
Real estate markets in California, Florida, Nevada, and Arizona are seeing renewed activity as bargain hunters snatch up discounted homes. Because of increased housing inventories and historically low interest rates, we find ourselves in the biggest buyer's market our country has ever seen. If you haven't already done so, you owe it to yourself to contact your mortgage planner and real estate agent to make the most out this incredible opportunity!
Posts
