Texas Mortgage Brokers Back in Business
The Texas mortgage market continues to bounce back with another surprise cut by the FED today. Fed delivered a three-quarter rate cut on Tuesday, making rates the lowest they have been since 9/11. MBS prices are up +13/32 (FNMA 30yr 5.5 at 101.24), which is about 15/32 higher than Friday at this time. The 30 yr fixed FNMA required net yield (60 day) is now at 5.35%, the lowest level of the month. World equity markets followed US stock markets lower over the long weekend, and this morning the Fed responded. In a surprise move, the Fed lowered the Fed Funds rate by three quarters of a point to 3.50%, the largest rate cut since 1984. Citing increased risks of slower economic growth, the Fed cut rates between meetings for the first time since just after the 9/11 attacks in 2001. With the next Fed meeting just over a week away on January 30, today’s action was a very unusual move, indicating the severity of the conditions in financial markets. In addition to today’s cut, investors are also expecting another half point cut in the Fed Funds rate at next week’s meeting. The Dow was down as much as 464 points earlier this morning, before bouncing back and recovering almost half of the losses. No economic data will be released today.
The FED cuts has sent Texas mortgage brokers in a frinzy trying to keep up with the phonelines. Brandon Tully, Elite Financing of Austin, Texas, Reported a sharp increase in phone activity this week and expects the activity to continue as people take advatage of the low rates for home refinancing in Texas.
January 22nd, 2008 at 12:25 pm
I can’t believe a 3/4 point cut today. Do you think rates will continue to drop? How low can they go? I also follow the Texas mortgage market with my blogsite Texas Mortgage Blog. Feel free to follow my blog posts and thanks for the information.
You can read the mortgage blog here Texas local mortgage lenders for multiple quotes on home loans from local Texas mortgage brokers.
January 22nd, 2008 at 4:26 pm
Europe is raising rates while the US is lowering them. This doesn’t look good for the dollar. Time to buy some gold and refinance your house!
At some point interest rates will start rising again.
January 23rd, 2008 at 6:42 pm
I think the better question is how far rates can be dropped before they have a marked impact on the direction the economy is heading. The Fed has been acting to follow the market lately, and banks were already lending to each other at these lowered rates. The fact that the Fed cut only served to match what was happening in the market already. A PR stunt was all it amounted to.
But there’s a lot more uncertainty in the market that will have to be dealt with before things go back to any semblance of “normal.” Will Citi get the bailouts it’s hoping for? Will Countrywide be bought out or implode Enron-style before BofA can complete the deal? Will the credit card industry also begin to collapse this year?
February 5th, 2008 at 1:39 pm
I am worried about inflation and the stregnth of the dollar. I hope that the economy turns around and the credit crunch can loosens up.
February 11th, 2008 at 1:15 pm
Very good article. Keep up the good work!
February 16th, 2008 at 5:11 am
I am worried about inflation and the stregnth of the dollar. I hope that the economy turns around and the credit crunch can loosens up.
Very good article. Keep up the good work!…
April 13th, 2008 at 3:00 pm
With another 1/2 percent cut coming soon and inflation on the rise the dollar is going to continue to get hammered. You have to wonder when washington will get the idea maybe spending should be brought under control a bit. Or we could just keep printing money until it is worth as much as my enron stock turned out to be.