After the Federal Reserve announced it’s recent stimulus program, mortgage rates reached historic lows with the 30 YR at 3.25% and FHA at 2.875%. In an effort to boost US economic growth, the Fed is purchasing $40 Billion a month of mortgage back securities. The goal is to push down longer term interest rates which should encourage more lending and borrowing. The Fed also pledged to keep short term interest rates low into 2015. This all translates into a great opportunity for anyone looking to purchase a new home. Even though underwriting standards are more restrictive than a few years ago, mortgage financing is available and at rates we may never see again.
This mortgage moment is brought to you by Cathy Robin NMLS # 336090 with Summit Mortgage. If you have more specific questions please feel free to contact Cathy at 952- 449-7144.