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Mortgage Rates are Dropping - - - Fannie Freddie fallout!

Mortgage Backed Securities are up 94 basis points right now. That means we should see rates drop another .125 to .25% today. It's horrible that Fannie and Freddie mismanaged themselves so much that the government needed to step in over the weekend to run them. Evidently this was done so that the Japanese and Chinese would still consider Mortgage Backed Securities good investments. Let's see if this is enough stimulus to jump start the real estate market. In any event rates have dropped for today. Let's see what the full impact of this move is.

Posted by Larry Bettag Illinois FHA Specialist on 09/08/2008 09:01 AM

Comments (3)

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3 Comments on Mortgage Rates are Dropping - - - Fannie Freddie fallout!

Larry, I am thinking of my buyers who closed last week. They are probably going to be disappointed that interest rates have dropped since their closing.

09/08/2008 09:10 AM

by Shirley Parks San Antonio Real Estate & Luxury Homes (RE/MAX Realty Advantage, San Antonio, TX)

Larry- thanks for the update. It'll be good to see rates drop a bit. Although as you know they weren't "high" to begin with. Hopefully this will help change the perception in the mind of the buyer.

09/08/2008 09:14 AM

by Tim Baldwin (RE/Max Commonwealth Group)

Shirley....you can refi them or recommend it soon.

Tim...let's hope so.

09/08/2008 10:53 PM

by Larry Bettag - Cherry Creek Mortgage