bentleyWIRE | blogged

    At no point during this "credit crisis" has it been more evident that the Fed is fully committed to propping up this country's economy!  Today marked a move equivalent to firing a bazooka where the Fed Funds rate was slashed 75 bps.  This will, almost immediately, lead to lower rates for most consumer debt pegged to the Prime Rate such as credit cards, Home Equity Lines of Credit and even small business loans.  More importantly, the Fed made it clear that they will keep the Fed Funds target rate low and do whatever it takes to ensure "sustainable economic growth" and to preserve market stability.  This will include the purchase of Fannie/Freddie Mortgage-Backed Securities as well as U.S. Treasury securities.  As a big buyer of these types of securities, they are injecting demand into the market which will boost prices, reduce yields and ultimately bring mortgage rates DOWN!

    We are advising our clients to look at refinancing existing mortgages within conforming and super-conforming loan limits of $625,500 or less.  Rates are close to 5.00% and even less in some cases.  Also, I believe it can be a great time to purchase in this buyer's market combined w/ very low mortgage rates.  Although rates may stay low for a while, there are no guarantees.  Contact me today to discuss your specific situation.  I always advise as if you were family!