I have heard a lot of speculation on this topic for months now, but finally it seems that someone is agreeing with me! For months, I've been saying that mortgage rates SHOULD be in the mid to low 4's given the evidence shown by all economic indicators.
It appears that I may get my wish, although not for the right reasons. If, and that's a big IF, the government utilizes the TARP funds properly (you know that other stimulus package we passed back in the Fall), we could see mortgage rates among the lowest they've ever been.
This is a great opportunity, however the government needs to set realistic expectations as well. For example, if your property is a condo, it is unlikely you will get the best rate on the market. The same applies for multi-unit properties and second homes. Many of the guidelines have changed since borrowers last refinanced or purchased a home. This news may come as a huge surprise to borrowers. Likewise, some individuals who once qualified quite easily will be shocked to find they can no longer qualify for a mortgage. If the government is going to take responsibility for lowering mortgage rates, they should take responsibility for setting expectations for homeowners. Otherwise, they are left with the option of easing up on certain guidelines to help "good" borrowers qualify for the the best rates.
Either way, tomorrow's announcement could be monumental for the mortgage industry. Keep your eyes and ears open because we don't know how long the opportunity will last! If you have any questions as the news is released, please feel free to contact me.
Make it a great day!
It appears that I may get my wish, although not for the right reasons. If, and that's a big IF, the government utilizes the TARP funds properly (you know that other stimulus package we passed back in the Fall), we could see mortgage rates among the lowest they've ever been.
This is a great opportunity, however the government needs to set realistic expectations as well. For example, if your property is a condo, it is unlikely you will get the best rate on the market. The same applies for multi-unit properties and second homes. Many of the guidelines have changed since borrowers last refinanced or purchased a home. This news may come as a huge surprise to borrowers. Likewise, some individuals who once qualified quite easily will be shocked to find they can no longer qualify for a mortgage. If the government is going to take responsibility for lowering mortgage rates, they should take responsibility for setting expectations for homeowners. Otherwise, they are left with the option of easing up on certain guidelines to help "good" borrowers qualify for the the best rates.
Either way, tomorrow's announcement could be monumental for the mortgage industry. Keep your eyes and ears open because we don't know how long the opportunity will last! If you have any questions as the news is released, please feel free to contact me.
Make it a great day!
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