The $800 billion infusion of federal funds into credit markets has an immediate impact on mortgage rates.
The Fed has once again missed the root of the problem. Buyers are not sitting on the side lines because of high interest rates. It should be noted that the average,and some times above average buyer CAN NOT qualify for the loan. Debt to income ratio is the #1 stumbling block on the path to home ownership. running a close second on the obstacle course is the subsequent required appraisal of the subject property. HOMES are not appraising .Why? Stressed property's have brought values down in most areas of the Nation... Lower rates are fine, but the 90$ per month mentioned in this article will no longer buy a weeks worth of groceries for the average family of 2.5 We will have to loosen up lending standards to push the markets into a positive future. I do not see Banks doing that any time soon.
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