Why Mortgage Rates Aren’t Lower
With storm clouds hanging over the U.S. economy, Federal Reserve Chairman Ben Bernanke has gone on the offensive, slashing the federal funds target rate by 3 full percentage points—to 2.25 percent—since September.
But despite the central bank’s aggressive action, prospective homebuyers are left scratching their heads. After all, the average interest rate on a 30-year, fixed-rate mortgage has fallen by only about half a percentage point, to 5.85 percent, since mid-September. So what gives?
Does the Fed set mortgage rates? (www.mylendingplace.com)
No. The Fed is responsible for setting the federal funds target rate, which is the interest rate that banks charge each other for overnight loans. “A bank’s balance sheet needs to balance every day,” says Ken Mayland, president of ClearView Economics. “If a bank needs funds, it will borrow. If it has a surplus, it will lend—at the federal funds rate.”
Tags: Texas Mortgage Refinance
Home Equity Loan Austin Texas | Texas Mortgage Refinance
Posted by: admin in Home Equity Loan Austin TexasHome Equity Loan Texas | Current Mortgage Rates | Texas 30 year 15 years fixed rates
Home Equity Loans, Austin Texas: I recently helped a client get out of debt with a home equity loan. They’ll save over $900/month. Now they have much more room in their monthly budget.
With the current 30 year fixed rates around the 6.00% range and the 15 year fixed rate in the 5.25% range (May 2008), this may be a good time to refinance your home or investment property and get out of consumer debt at the same time.
If you have property in Texas and want to buy or refinance, call 512-996-8194 or email jon@mylendingplace.com
Please complete the free, no-obligation Texas Home Equity Home Loan Application.
Thinking of refinancing your home or investment property? Want to lower you mortgage rate, move from a 30 year mortgage to a 15 year fixed rate, or consolidate high interest consumer debt and save hundreds of dollars each month. Gas prices aren’t likely to come down but your total monthly expenses can by refinancing your home or investment property. Read the rest of this entry »
Tags: Austin Texas Investment Refinance, Home Equity Loan Austin Texas, Texas Mortgage Refinance
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