My New Blog

As economic unease simmers investors seek safe havens for their money in treasuries and mortgage backed securities.  The increase in demand raises the price and lowers the yield thus pushing down interest rates.  The 30 year fixed mortgage fell to a low of 4.69% down from 4.75% a week earlier and 5.24% last year. According to the Wall Street Journal this is a surprise as analysts expected rates might rise after the Fed stopped buying up mortgages last month.  Now they believe rates may go even lower.  This obviously is good news for home owners looking to refinance or buyers looking to take advantage of slumping prices.  The down side is lenders are so strict with whom they will lend and require higher down payments, higher credit scores and job stability making it difficult for all but the very best to get these deals.  Jumbo loan (loans greater than $417,000)  rates are down to a low of 5.65% as of Thursday.  We will have to wait to see if this spurs home buying.