Great News! Mortgage rates are as low as they’ve been in over 2 years!! 30 Year Fixed rate loans have been as low as 6% this week for conventional loans up to $417,000 with zero points (2 points would buy you down to 5.5%). Some of you will also be thrilled to hear that Jumbo rates have also made a huge leap downward! Jumbo 5 Year ARM rates had been over 7% for the past few months but have moved down under 6.5% in the past couple of weeks.
Now is the time to make a move. Mortgage rates are down as a direct result of weakness in the US economy. Soon the Federal Reserve Board will start to reduce the federal funds rate in an effort to stimulate the economy. The reason rates are low is because the economy is slow, so, when the Fed gets serious about putting some fire back in the economy mortgage rates will go up. Nobody gets this – mortgage rates can actually go up when the Fed reduces the federal funds rate!
PS: We are still doing 100% financing at great rates!
[tags]michigan mortgage, interest rates[/tags]