May 21st, 2014 4:33 PM by Preston Ware
Checking my rate sheet recently I
noticed that FHA rates have gone DOWN! A par rate was at 3.75% and I could pay
costs at 4.25%. (Pricing varies on each and every loan)
Any kind of improvement is nice. This
good news is kind of unexpected because all along we were expecting interest rates
to start going higher in 2014. Our government is expected to begin the strategy
of easing back the purchase of mortgage backed securities which has helped
maintain interest rates at historically low levels.
The strategy here is that when the Fed
is actively buying these securities prices stay high and yields or interest
rates stay low. If they stop prices will fall and interest rates will rise.
Federal Reserve Ben Bernanke has said
that the Fed intends to begin the end of the purchasing but based on two key
signs. Two signs that have been tough to over the last few years.
Unemployment rates low. Currently I believe we are in the 6%
Inflation rates in an acceptable range. Currently they are around
To price out a loan please give me a call at 561-329-0075