Your Questions About Mortgage Rates

Daniel asks…

How soon can the stimulus bill come into effect to lower the mortgage rates?

Ive read that the stimulus bill will help the mortgage loans by offering higher tax rebates and lowering mortgage rates to 4%. How soon will we see this happen?

admin answers:

Lets just “hope” that this asinine “stimulus” package does not pass at all!

Laura asks…

Where do you think 30 year conventional mortgage rates will be by spring?

Hoping to buy a house this spring and would really love if the rates stayed low. Right now, we can get 4.125% in our area for a 30 year conventional mortgage (no points). Think we’ll see them increase over 5%?

admin answers:

No I don’t think they will increase to over 5% by the spring. December and January are slow months in real estate. I would predict 4%-4.6%

James asks…

Where can I find the best mortgage rates in Virginia online?

I am looking for an online mortgage lender thats does mortgages in Virginia Beach, VA. Who has the best rates?

admin answers:

I actually just got preapproved to purchase a new home with a pretty nice interest rate at and they were very helpful. It is my first time purchasing a home.

They also have a page where you can check the daily rates. My rate actually ended up being lower then the rate on that page though because I qualified for an FHA loan and I am a first time home buyer. Make sure to ask about FHA rates.

Mary asks…

How long will mortgage rates be low?

I wanted to save a little bit of money for a few months and buy a house before the end of August. Will the morgage rates still be as low as they are now in August 2008? Also what detemines if mortgage rates rise or fall?

admin answers:

Mortgage rates are going to be low for a long time. The economy is falling apart and keeping interest rates low is one of the few things that the government can do to help the economy.

The Chairman of the Federal Reserve decides the rate of interest that is charged to banks. This influences the interest rates on home loans.

Good question.

Maria asks…

Why do 30 year mortgage rates continue to rise, while the fed continues to lower the fed funds rate?

It seems as though when money is more readily available, the 30 yr mortgage rates should drop.

admin answers:

The fed rate you’re refering to is the rate for overnight borrowing to what is in the industry referred to as window loans – loans that keep the banks liquid amounts where the government requires.

Funding for mortgages, which are long term by nature, comes from investors. There are still too many nervous people hessitant to invest in mortgages again.

So basically, these two pools of money come from different sources and while one might be inclined to think they should move the same direction, there is nothing that really ties them together.

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