Don't Miss the Boat! Mortgage Rates are Falling!
If you've been waiting for the right time to buy . . . it's now!
T oday's Employment Report from the U.S. Department of Labor showed marked and unexpected weakness in non-farm payrolls, sending the stock market downward and the bond market upward (lowering bond-yields.)
The 10-Year Treasury Note's yield is down nearly 3% and the 30-Year Note's yield is down over 2%. And "Two-year notes haven't been this low since December 2004," noted Tom diGaloma, head of Treasury trading at Jefferies & Co..
Although long-term mortgage loan rates are more closely tied to the Mortgage Backed Securities market, the Treasury's long-term bonds are competitive products in the marketplace and will necessarily have an affect on mortgage rates.
Further, even the most conservative pundits are forecasting a drop in the Federal Funds Rate by one-quarter (1/4%) to one half percent (1/2%) by the September 18 FOMC Meeting. This will be great news to anyone with an adjustable rate mortgage as well as anyone planing to use adjustable rate loan products to purchase a home.
With home prices having already moderated significantly, this situation will dramatically increase home ownership affordability.
There has not been a more favorable time to consider a home purchase since early 2005.
Don't miss the boat! Be sure your lender offers a free "float-down" on their rates. You'll be so glad you did.