Tampa Mortgage Rates Report: Fed Cuts To Prompt Lower Mortgage Rates – Will Home Buyers benefit in November?
October 29th, 2008 Categories: Tampa Mortgage News
Will Feds Cut rate cut help Clearwater home buyers get lower Tampa Mortgages in November?
Tampa Florida – Brian Brady, America’s #1 Mortgage Broker, always keeps his pulse on the mortgage market for us. Today he shared how the latest Fed Cuts will effect those planning to buy Clearwater Tampa Homes. Today that “we analyze mortgage rates by examining
the mortgage-backed securities market and its reaction to economic data
and events. Today, the Federal Reserve cut the Fed Funds rate to an
historical low of 1%:
The Fed funds
rate target is now 1%, the lowest level in more than four years. In
announcing its decision, the Federal Open Market Committee cited a drop
in spending by consumers and businesses, and predicted that consumption may slow further due to tighter lending standards.
“The pace of economic activity appears to have slowed markedly,”
the FOMC said in a statement, “owing importantly to a decline in
consumer expenditures.”
Why’s
the economy in the tank? You just aren’t spending enough money, Joe
the Plumber. Of course, you can’t borrow any either so you’re hesitant
about spending. Hence, the Fed cut in rate. Normally, a Fed cut
should be followed by a RISE in mortgage rates but it looks like the
mortgage-backed securities market anticipated the cut a week ago.
Let’s take a look the crystal ball (market chart):
See what’s happening here? Two weeks ago, we had a six day BIG
drop, which caused rates to rise from 5.875% to 6.5%. That drop was
followed by a 5 day rally, which brought rates back down to 5.875%.
Then, we had a six day BIG drop, driving mortgage rates back up to 6.5%
(today)…
…and I think the market overreacted which means I think we’ll see lower mortgage rates into the beginning of November.
What’s this mean for those buying a Home on Tampa Home Mortgages?
This is the kind of volatility we’ve come to expect. Tampa Mortgage rates
should drop to 6.25%, pause, then drop again to the 6% level or below.
No guarantees but November closings should get a peek at 6% or better
rates soon”
Related posts:
Tampa Mortgage News: Tampa Mortgage Rates Report: October 27, 2008
Contact us for a FREE quote and to find out your Tampa Home Mortgage
options or you can search all Tampa homes for sale.
Originally posted on Millionaire Real Estate Lender by Brian Brady, America’s #1 Mortgage Broker
Call Us Today at (727) 710-8036 to hear more about how we can help you!
Copyright © 2008 Jack and Cyndee Haydon, Clearwater REALTORS
and your Clearwater Real Estate Consultants specializing in Clearwater Tampa Real Estate and may not be copied, reproduced, distributed, transmitted, displayed or published.
About Cyndee Haydon
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Tampa Mortgage News: Tampa Mortgage Rates Report: October 27, 2008
October 27th, 2008 Categories: Tampa Mortgage News
Tampa Mortgage – Home Loan Rates Jumped
Tampa Florida – Friday, Tampa mortgage rates jumped from 5.875% to 6.25% as mortgage-backed securities traders joined the world wide sell-off. Global stock markets plunged Friday and the Asian markets were weak for Monday. Investors world wide don’t want to be invested in ANYTHING.
When the world panics, we FLOAT mortgage rates. So, roll the projectors! The movie “Float Club” is playing all week.
Interestingly enough, gold isn’t skyrocketing in price. Long held as a “safe haven” during times of turmoil, investors are opting to hold their portfolios in cash instead:
Bullion is down 15 percent this month as the dollar climbed to a two-year high against the euro and the Standard & Poor’s 500 Index headed for its steepest monthly loss since 1938.
`We’re seeing some consolidation in the market today as investors pause for breath following the roller-coaster we had last week,” Zhu Lv, research manager at Shanghai Tonglian Futures Co., said from Shanghai today.
Gold for immediate delivery gained as much as 1.7 percent to $746.91 an ounce, and traded at $735.33 at 10:29 a.m. in Singapore. The metal fell below $700 on Oct. 24. Silver for immediate delivery was up 1 percent at $9.4575 an ounce.
Gold still benefits from its safe haven properties, although these days, more and more are choosing to hold just cash instead, so it won’t be surprising to see gold below $700 again,” said Zhu.
What’s this mean if you’re in the Market for a Tampa Mortgage?
What’s that mean to home buyers or property investors looking to get a home loan or mortgage in the Tampa Bay area? It means that while investors are cautious, they aren’t completely terrified and that bodes well for mortgage-backed securities. When investors buy mortgage-backed securities, mortgage rates drop; that’s what we think will happen in the next 7-10 days.
I cautioned borrowers to lock in all October closings last week when mortgage rates dipped below 6%. That opportunity had a short-lived window. Like all panics, reason eventually prevails. Central banks world wide are slashing interest rates to avoid an economic recession. This make US dollar denominated investments, especially mortgage-backed securities more attractive.
Hold out for a Tampa mortgage rate below 6% if you’re closing in November. Contact us for a FREE quote and to find out your Tampa Home Mortgage Options
Originally posted on Millionaire Real Estate Lender by Brian Brady, America’s #1 Mortgage Broker
Call us Today at (727) 710-8036 to hear more about how we can help you!
Copyright © 2008 Jack and Cyndee Haydon, Clearwater REALTORS and your Clearwater Real Estate Consultants specializing in Tampa Bay Real Estate and may not be copied, reproduced, distributed, transmitted, displayed or published.
About Cyndee Haydon
Cyndee Haydon, Realtor with Future Home Realty specializing in luxury waterfront and beach homes of Clearwater Beach - St Pete - Tampa Bay area with her husband and partner, Jack Haydon Cyndee's Google Profile
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