changing pmi rates and that will make a difference as to how much home you can have. When money
gets tighter, rates get higher. Get in contact with your lender and get into available homes with your agent. Another force to reckon on: With oil prices so high and the cost of consumer goods going up, the FED begins to worry about inflation. They are talking about it now and watching the markets. When the FED believes they see inflationary forces at work, they raise interest rates. No one can really predict the future, but we know rates are good now. If you don't have a lender, I can give you one that can explain all this in detail.
Now is the best time, if you are thinking of buying a house, do it! Folks that have had their houses on the market all summer are ready to talk! Find an agent to represent you and get a move on. You will never find the absolutely "perfect" time, and if you wait for it, you will never buy a house. The rates come and go and the availability of ready money for loans also comes and goes. My first house, purchased 30 yrs ago with an FHA loan was 7.25% interest and 5 years later that rate was a BARGAIN, because rates then were in double digit territory.
I just wish you were living in this area, I love working with first time buyers! Good luck and happy house hunting!
Century 21 Landmark Realty
The Fannie thing is far away from today's rates. This week has been a roller coaster with some big cuts and hikes. Make sure you look at the entire finance package. Back in December and January rates were at a 43-year low. Today they are less than a point higher. If your looking for a home remember that it is a buyers market and rates are near historic low levels. What are you waiting for?
Let me know if I can help
Tony Grego - The Place for Great Rates!
Wall Street is concerned about Fannie/Freddie's balance sheets - not necessarily the ability to buy loans from banks.
Fannie/Freddie raise money two ways: 1.) Selling stock, just like any other corporation, to raise capital for operations and expansion and 2.) Selling bonds (MBSs) backed by pools of mortgage loans to raise money to buy mortgage loans from banks.
The main concern for borrowers is if Fannie/Freddie are viewed as financially troubled, buyers of their Mortgage Backed Securities many demand a higher yield (and corresponding interest rate on loans) to offset the risk of undercapitalization on their balance sheet.
It's likely Unclse Sam would step in with a cash injection long before investors in MBSs became leery of investing... but we may see interest rates rise back to the normal levels of 7.5%-9.25%... then again Uncle Sam might act there buy issuing guarantees directly (such as through FHA) or indirectly (such as through GinneMae) to make sure a rise in rates doesn't choke off the housing recovery.