Understand Why Mortgage Rates Went Up After A .75% Cut

Team Fed slashed the its key lending rate(Fed Funds Rate).75% today. Bringing the prime rate down to 5.25% the lowest it has been since December of 2004. You might have been on the fence waiting for this well publicised rate cut before you pulled the trigger on refinancing, only to find out tonight when call your Loan Officer that mortgage rates actually got worse today. Hopefully that Loan Officer can explain to you why this keeps happening time and time again after the Fed cuts rates. If your loan officer does not have the right answer you may want to look into finding a Mortgage Specialist who understands what moves the mortgage rate markets and how preparation can save you thousands of dollars. Click play on "Fed Rate Cuts Do Not Equal Lower Mortgage Rates" in the side bar to the right or below this text.

Rates Improve .25% last week....

JUST WHEN I THOUGHT I WAS OUT...THEY PULL ME BACK IN." Al Pacino in the 1990 film, The Godfather III And if Bonds and home loan rates thought they were out of the days of volatility...they got pulled right back in, as last week brought daily price swings of almost historic proportions. For the week overall, fixed home loan rates improved by about .25%.

Jobs Report Flop

The Jobs Repot today was a real stinker and has help us get back the upper hand on the 200day moving average battle...as a word of caution the battle is far from over...listen in to find out what happened today.

BREAKING NEWS

HUD Announces New FHA and Agency Loan Limits

More than a week early, the Department of Housing and Urban Development (HUD) released the new FHA and GSE (Fannie/Freddie) loan limits for 2008 today.

Authorized by The Economic Stimulus Act of 2008, which was signed into law on February 13, 2008, the new FHA limit is based on 125% increase of each county's median price, with a minimum of $271,050 and a maximum of $729,750. The increased Fannie Mae and Freddie Mac loan limit follows the same formula, with a minimum of $417,000 and a maximum of $729,950. For the most part, these numbers are the same as the FHA limits except in lower-cost counties, where the Fannie/Freddie limits will be higher.

Understanding the Higher Loan Limits

The bill passed Congress on February 7, 2008 and was signed into law by the President on February 13, 2008...so what does this all mean? Click on "Understanding the Higher Loan Limits" to the right in the side bar and listen in to all the details.