The really big news this week is interest rates: 30-year fixed conforming mortgage rates fell to their lowest level in 37 years. With the Fed dropping its short-term rate to between 0% and .25%, and its purchasing of mortgage-backed securites, long-term rates will very likely fall further in the first quarter of 2009.
For home owners, these rates should compel you to refinance. For potential buyers, it’s time to pick a mortgage program and find your new home: you’ll probably come out ahead, even if the median home price continues to slide.
If you know of someone who is ready to take advantage of low prices (see a December 21 LA Times article entitled “Can You Afford It Now?) and low interest rates, please call me with their name and contact information. I’ll take great care of your family and friends.
Click here to see all rates as they began the week of December 22.