How Low Can You Go? Mortgage Interest Rates Drop Again
November 28th, 2008 | categories: Coconut Grove Real Estate
Authored By Our Guest Contributor: James Venney
In the past 24 hours mortgage interest rates have moved lower, again by another .5% and are now standing at all time historic lows. Yesterday I wrote about getting “your ducks in a row” as economic indicators 
including treasury yields were foretelling of lower rates and it didn’t take long. The action taken by the Fed to inject another $800 billion into the financial markets is having a dramatic effect on the mortgage backed securities market and as a result all mortgage interest rates have dropped to new lows. If you are currently looking at homes for sale in any South Florida neighborhood you will be paying a significantly lower interest rate than you would have been paying this time last week.
Many current homeowners in South Florida who have “jumbo mortgages” are currently paying rates of 6.5% or greater and should seriously consider refinancing their mortgages. Currently interest rates on the 5/1 Jumbo ARM stand at 6.125% and are expected to move lower. 30 year fixed rates for conforming loan amounts (under $417,000) are currently at 5.25% and moving lower.
The smart money is buying and/or refi-ing now!
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Authored By Our Guest Contributor: James Venney CMPS, CMA
Phone: (305) 960-2671
Email: [email protected]
James Venney is a licensed mortgage broker and a State Certified Residential Appraiser. Currently, he is the top producing mortgage banker at Home Services Lending which is a joint venture with Warren Buffet’s Berkshire Hathaway and Wells Fargo Bank.