The Federal Reserve
This morning in our weekly Crescent Realty Sales meeting, we had a visit from Paul Miller, a Mortgage Banker at National City Mortgage. He had some great news:
In a surprise move today, Treasury Secretary Henry Paulson announced the Federal Reserve will be buying up to $800 Billion worth of Mortgage Backed Securities and AAA rated Education, Auto, Credit Card and Small Business loan securities. This announcement sent home loan rates tumbling to 5.25% at some banks for 30 year fixed rate loans both FHA/VA and Conventional. Approximately $600 billion will be allotted towards the mortgage market which will increase the value of these underlying securities. These purchases from the government will start as soon as next week and should help mortgage interest rates stay very attractive in the near future. With this infusion of cash into the mortgage market combined with exceptional deals in the pricing of homes, this is an excellent opportunity to buy a home.
Thanks again, Paul Miller of National City Mortgage for the update!
