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Gilbert Arizona Mortgage Rates For November 4 2008
Gilbert Arizona Mortgage Rates For November 4 2008
Don’t forget to get out and VOTE!
What Recent Changes In The Financial Markets Mean To You: Lock. Now.
What an interesting time to “unplug”. I have been “out-of-pocket” for about a week and a half and during that time, more happened in the financial markets than could be explained in a single post.
But, in case you missed it, During the last couple of weeks, some of the major changes in the financial markets included:
Lehman Brothers filed for bankruptcy
AIG was bailed out by the Federal Government
Bank of America bought Merrill Lynch
Congress is planning on giving Treasury Secretary Hank Paulson a line of credit that he can use to purchase up to 700 Billion of “bad mortgage debt” at any one time. (Note the part in section 6 of the Treasury’s proposal where it says that the maximum amount is 700 Billion at any one time — meaning it is possible to buy and sell, buy and sell TRILLIONS if Hank Paulson decides to”)
And those are just the highlights!
So what does all of this mean to you if you are currently trying to refinance your existing home or purchase a new one?
I don’t know for sure…
But if someone says that they know that guidelines are going to get easier and rates are going to be lower in the future, they must know something that we don’t.
The trend has been that guidelines are getting tougher during the last year or so and when I look into my crystal ball, I don’t see them getting easier anytime soon.
And guidelines matter more than rates.
As far as rates?
They may go lower, they may go higher — but — if you control the downside risk, the upside rewards will generally take care of itself — so we are coaching our clients to lock now if they have a loan in process.
And hold on for a wild-financial-ride over the coming months as the dust settles from all of the recent changes.
Fed Leaves Fed Funds Rate at 2%
From the Federal Reserve:
The Federal Open Market Committee decided today to keep its target for the federal funds rate at 2 percent.
Economic activity expanded in the second quarter, partly reflecting growth in consumer spending and exports. However, labor markets have softened further and financial markets remain under considerable stress. Tight credit conditions, the ongoing housing contraction, and elevated energy prices are likely to weigh on economic growth over the next few quarters. Over time, the substantial easing of monetary policy, combined with ongoing measures to foster market liquidity, should help to promote moderate economic growth.
Inflation has been high, spurred by the earlier increases in the prices of energy and some other commodities, and some indicators of inflation expectations have been elevated. The Committee expects inflation to moderate later this year and next year, but the inflation outlook remains highly uncertain.
Although downside risks to growth remain, the upside risks to inflation are also of significant concern to the Committee. The Committee will continue to monitor economic and financial developments and will act as needed to promote sustainable economic growth and price stability.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Elizabeth A. Duke; Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; Sandra Pianalto; Charles I. Plosser; Gary H. Stern; and Kevin M. Warsh. Voting against was Richard W. Fisher, who preferred an increase in the target for the federal funds rate at this meeting.
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