Rassin On Real Estate

The rate market has been extremely volatile the past few months, to say the least! However, since the election it has mellowed somewhat. The fact that the election is over is helpful.

The rate market has gone back to a tradtional cycle somewhat over the past week: as stocks do better, rates get worse and as stocks get worse, rates get better! We have seen the DOW plummet with some announcements of companies doing poorly. Rates have received some of that benefit.

Now is a great time to buy a home or refinance. Home prices have been depressed for months–you can get a great deal! Rates are low on fixed rate mortgages. So, you can convert your adjustable mortgage to a fixed and benefit greatly.

Call me today and let me help you see if it makes sense for you to refinance or how you can purchase a new dream home or vacation home. 910.616.3273

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Filed under economy, Mortgage, Real Estate Tips

Tagged as home, markets, purchase, rates, refinance, stocks

October 29, 2008

Prime gets low,low,low,low…

The Federal Reserve dropped the federal funds rate by .5% down to 1%. This is the lowest it’s been since June, 2004. It was at 1%, the current rate, for one year: June, 2003 to June, 2004.

This means prime rate will drop to 4%. Prime rate is a key factor for much of our short term debt, especially, credit cards and home equity lines of credit.

Watch your credit card statements and any notices sent to you carefully! Just as the manufactures shrink the amount of food they give us in their packaging, credit card providers are jacking-up your interest rates and fees to help generate revenue. Also, they may cut your credit limit. Don’t get caught with your pants down on this!

It’s too cold for that!

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Filed under economy

Tagged as credit cards, Fed, fees, funds rate, prime

October 8, 2008

Rate Drop

The Federal Reserve had an emergency rate cut of .5% points on the discount rate this morning. This was coordinated with several other Central Banks around the world as a concerted effort to stem the tide of rising panic and uncertainty in the market worldwide. This means short-term rates, such as prime, will drop by .5%. This does not mean that our long-term mortgage rates will drop, necessarily.

One important note, DO NOT PANIC! The market is not reacting 100% to data but the impression of the uncertainty. The news media is going to hype the fear to keep you interested. While things may get worse for stocks, etc., our market, Real Estate and Mortgage, will turn around! Rates have been, are, and will continue to be favorable.

Mortgage rates are set by the yield on bonds known as Mortgage Backed Securities (MBS). These instruments trade throughout the day and as the price of the MBS goes up, the yield goes down and rates follow. Right now, with so much uncertainty in the market, rates have not adjusted in wide swings. 6% is the rate they have been hovering around as a benchmark.

That being said, we are, currently, under 6%! In addition, the residential mortgage market has adjusted many months ago to the credit situation we find ourselves in currently. We still have ALL of the programs we did before this blew-up. We still can close loans. And most importantly, we are still funding loans! We will not have a squeeze on our ability to originate, close and fund loans.

Take a deep breath. Relax. And, in my case, have another cup of coffee!

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Filed under Mortgage

Tagged as 6%, benchmark, Fed, funds rate, MBS, Mortgage, prime rate

October 1, 2008

Sorry about the sound problem on the feed tonight, we will have it fixed by tomorrow

Sorry you are unable to hear the audio from the show tonight below, but not to worry, we will have it fixed by tomorrow and you can watch and LISTEN to tonight’s show! Thanks for your patience!!

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September 17, 2008