Could this rate drop be a trend?
Fed under pressure now after “no action” in last meeting!
With the most recent rate drop, I went from quoting most conforming loans for purchase and refinance at just below 7% for a 30 year fixed at no points, to just above 6%! Lower than that for FHA and VA! Even though the Federal Reserve voted at their recent last meeting to keep interest rates exactly where they were the previous month, economic news came out the day after and spooked the major “Bond Market” purchasers. This drove down long term rates without the help of the Federal Reserve. This most likely sets up the Federal Reserve to lower short term rates (which in turn supports lower long term rates) at their early September meeting. If this takes place, it will help homebuyers and refinancers! Even “Reverse Mortgages” will feel the relief because most of those are adjustable rates oriented. Give us a call to find out how the current rate drop might help you! Michael Mitchell, 707-337-5970 mobile, 530-406-2200 & 707-259-1117 land lines!