This article from today's Chron spells out what is likely happen to mortgage rates as a result of the economic stimulus bill. In a nutshell? It may be a while before the new conforming loan limits result in more affordable loans. But it will happen.
However, the piece notes, "waiting is not without risk. Mortgage rates are pretty low right now. If they shoot up in the next month or two, you could lose whatever advantage you might get from holding out for a conforming loan. There's also a chance lenders will continue to tighten their credit requirements so much that you no longer qualify for a loan. And once the new loans come out, you will probably have to get in line with lots of other eager borrowers." There have been some rumblings that the Fed's recent lowering of the shorterm interest rates may actually drive long term rates (i.e. mortgage rates) up. If this happens, it's possible that the new comforming rate will be the same as the existing jumbo rates.
Stay tuned.
Sunday, February 17, 2008
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