As promised, last week was heavy on data and on drama. And mortgage rates continued their slide lower.
This week, by contrast, is devoid of data and markets are already digesting the Federal Reserve’s surprise 0.750% rate cut this morning.
Mortgage rates are falling in response, but not because of what the Fed did as much as what the Fed implied by doing it.
The Federal Reserve does not control mortgage rates, per se, but it does exert an influence. This is because when the Federal Open Market Committee makes changes to the Fed Funds Rate, it is making a broader statement about the health of the economy.
This morning, and in advance of its 2-day meeting January 29-30, the Federal Reserve chopped the Fed Funds Rate by 75 basis points to 3.500%. This signals to markets that the Federal Reserve is keen on engineering a soft landing for the economy.
As you start to consider your mortgage options, you may quickly find yourself overwhelmed with the various options that are available.
So whether you are purchasing a home or wanting to refinance let us point you in the right direction.
Below is a download that will help you select the right mortgage.
Interest Rates Have Dropped!! Call 331-LEND (5363) to lower your monthly payment!
The news of 30 year fixed interest rates falling below 6% seems to have been lost in a sea of bad news about the economy and the looming recession everyone is talking about.
For most people we can lower your rate 1% or more. That could mean a savings of $100.00 or more per month at NO cost. So if you are planning on stying in your home you owe it to yourself to give us a call so we can reduce your monthly mortgage payment. Or simply apply online.
Well the economy has been in a recession for over a year now. As Homer Simpson would say D’oh!
Tucson saw a reduction on the number of homes sold in 2007 over 2006 by 37% fewer transactions. As a result the home inventory levels have risen to 8,708 as of December 2007 which has doubled over the last 2 years. In a healthy Tucson market there are about 3,500 to 4,000 homes on the market.
For detailed residential sales statistics click her: Stats
Stephan VanCleve and Melinda Davison
Davison Van Cleve PC, Attorneys At Law
Tucson, Arizona Second Home Buyers
“Todd did a great job and we would highly recommend him!”
Click the play button below to listen in to one of many happy homeowners that used Todd Abelson for their home loan needs.
As the largest sub-prime loan servicer in the country, Countrywide handles payments for 11.90% of the sub-prime market. That’s a massive $120 billion worth of loans.
The sheer size of that portfolio is why I am publishing the above chart. Normally, data from one lender wouldn’t be enough for a clean sample, but Countrywide is the largest servicer of loans and it holds that title by a longshot.
According to Countrywide’s servicing department, just 1.4 percent of its loans that defaulted in July 2007 defaulted because of “payment adjustment”.
That’s a tiny number.
The publicly available presentation also noted the other reasons why its homeowners defaulted on their mortgages:
- A decrease in household income led to 58.3 percent of all foreclosures
- Medical bills and/or illness led to 13.2 percent of all foreclosures
- Divorce led to 8.4 percent of all foreclosures
- Inability to sell a home led to 6.1 percent of all foreclosures
- Death caused 3.6 percent of all foreclosures
Hillary Biscay – Professional Triathlete
Click the play button blow to listen in to one of many happy homeowners that used Todd.