Good News for Buyers – Fed Cuts Rate

With the holiday shopping season in full swing many stores they are having big sales.

It looks like money itself has gone on sale!

There has been yet another rate cut by the Federal Reserve and it is promising that home mortgages will be less expensive now and hopefully into the future. The prime interest rate has come down to a historical low of 3.25% and it has trickled down to the to the mortgage industry. I just got a notice from our local lenders that rates were down to 4.5% for a 30 year fixed-rate loan. I think that lenders will be very busy this holiday season refinancing homes.

The Fed rate cut is part of an effort to stimulate the economy, by stimulating the housing market, and helping homeowners lower their mortgage payments, putting money in their pockets so they have more to spend. This could be the signal that many been waiting for the real estate market will be turning around. If the Fed keeps these low rates, 2009 could be the year that buyers comeback to the real estate market. I’m seeing it already in my business. Those with good credit and employment will surely be able to qualify for good loans. Let’s hope this good news spreads as fast as some of the doing gloom we’ve been seeing from the national press.

If you’d like any info about Bellingham Home’s or Condo’s you can give me a call at 360-739-6981 or drop me a line by email.
Image courtesy of flickr.com by jenn jenn