Federal Bailout for Fannie & Freddie
Mortgage rates have slowly eased over the past week as President George Bush signed into law an emergency Federal plan to rescue Fannie Mae and Freddie Mac, which hold nearly half the country’s housing debt. Freddie Mac spokesman was quoted as saying in its weekly mortgage-rate report Thursday that short-term, long-term, fixed and adjustable rates all have swooned. The spokesman attributed the drop to lower commodity prices as well, which eases concerns about inflation, despite mixed reports on the housing market. Oil price speculation seems to be coming back into check which also contributed to the commodity bounce.
Freddie’s 30-year fixed mortgages averaged 6.52% with an upfront payment of seven-tenths of a point, down from 6.63% a week earlier. Shorter term 15-year fixed mortgages averaged 6.17% with a payment of 6/10th of a point, down from 6.18%.
Five-year adjustable-rate mortgages that are indexed to Treasury notes averaged 6.07% with a payment of six-tenths of appoint, down from 6.16%. One-year ARMs posted an average rate of 5.30% with the same payment, down from 5.49%.
All four rates are also below year-ago levels.
Freddie Mac spokesman was quoted as saying “A drop in commodity prices eased market concerns over inflation pressures,” says Freddie Chief Economics Frank Nothaft, who noted that oil and gasoline prices reached their lowest levels since May.
On the other hand, it was difficult to get a clear reading on what housing reports released during the week meant for the relative strength of the market. The supply of existing homes climbed to 11 months in June, while the supply of new homes dropped to seven months for the second time in a row. The U.S. homeownership rate rose slightly to 68.1% during the second quarter from 68% the previous one, but was still below the 68.3% level a year earlier.
While most analyst still don’t see a true mortgage rebound occuring until early 2009, this Federal relief package should help stabilize the Texas home market and prevent further sliding of house prices across the state. The long of the short of the Federal bailout is that it is a temporary fix that will only expand the life of this recession. To describe one economist opinion “It’s like giving a heroin addict a fix instead of rehabilitating him. It solves the short term problems, but does nothing to address the long term.”
Tags: brokers, home loans, mortgage, rates, texas
August 4th, 2008 at 5:52 pm
Very useful info, thanks a lot!
August 21st, 2008 at 10:39 am
Why go with Hard Money or Private Money Lenders?
Many Homeowners and Investors ask them selves this question, but sometimes you need to read more to get some knowledge and than you will understand if Hard Money can really help you.
First of all we understand that Hard Money Lenders are privately owned by a person or a small entity, basically it can be someone that have some money in the bank and he understands that to loan his money will be a much faster way to make more of it.
Example: You have $100,000 in your bank
Option 1- you will put the money in a CD account and make 4.75% APR.
Option 2- You will loan your money and make 12% APR and charge 5- 10 points on the loan.
So that’s what private Money Lenders do, they go with the second option- Smart.
So why go with a Hard Money Lender?
1. Faster funding time, 5-7 days
2. Less documentation to show.
3. No credit is OK.
4. Large Loan amounts are OK too, up to $500,000,000
5. Some Hard Money Lenders will fund deals out of the country as well.
As you can tell today it is a much better, faster and easier way to go.
You’re probably asking your selves about the costs for this loan?
The Interest rates are not more than 12%, while with a Bank it will be probably 8.5% if they can do the Loan at all.
The points will be not than 10 while Banks will charge up to 3.
Now that you understand the difference you can make a decision, to approach a Hard money Lender or just go with your Bank.
August 21st, 2008 at 10:39 am
I need help with my Real Estate
Many Homeowners and Real Estate Investors need help today.
The Real Estate market or should I say the Economy in the U.S in general made a lot of Homeowners and Real Estate Investors really upset.
Investors are loosing money and Homeowners are loosing their homes, and it all happen so fast we couldn’t even realize what happen to us.
Many Real Estate Investors and specially Homeowners that are not in Real Estate to make money but just to have a home for their family got hurt and don’t know what to do and how to save them selves.
So here is a great tip that hopefully will help you with your mortgage and your Real estate investment.
Hard Money Lenders and Private Money investors.
Hard Money Lenders and private investors will help you with your mortgage so you will loose your home or your investment for a higher interest rate.
I get a lot of calls every day from investors and homeowners that are knowledgeable enough to call a hard money lender. But many of you that are not knowledgeable I just hope you’re reading this article, because I think it is your only way out today.
Banks can’t qualify anybody anymore, it’s sad but it’s true.
So homeowners are loosing their homes, and some homes have equity of few hundreds thousand in them. Because they don’t have the knowledge to call a hard money lender their losing their homes and their money.
If you’re reading this article we can help you save your investment and your home, just call a hard money lender now and save your real estate.
Good Luck.
August 30th, 2008 at 9:42 pm
after all this presidential race is over im sure the mortgage rates will only get better with mortgage lenders
September 11th, 2008 at 9:11 pm
Hey , just came across your post, I found it very informative and accurate, I wonder why comments are lesser in number, your creativity and knowledge is awesome! keep it up.
September 25th, 2008 at 1:50 am
Lower Mortgage rate is a big relief when the inflation is high and the housing price is reaching the top.
Smart Equity - mortgage Payoff, ask mortgage, live mortgage free, mortgage debt
November 28th, 2008 at 3:03 pm
Good information. Hopefully, bailouts will not become the norm, and what ramifications are there for the government picking and choosing who gets bailed out? I question whether government should be involved in the way it appears things are heading.
February 23rd, 2009 at 6:35 am
Hi,
The team work is good. I am proud of it. I must appreciate it.
joe
Home Loans
March 16th, 2009 at 2:08 am
Although a loan does not start out as income to the borrower, it becomes income to the borrower if the borrower is discharged of indebtedness.
June 28th, 2009 at 1:28 pm
Personally I do not think they are that bad. Find the files you are looking for at music-and-soundtracks.com the most comprehensive source for free-to-try files downloads on the Web