Mortgage Market Update:
The Federal reserve held interest rates steady when they met on June 25th, keeping the Fed Funds rate at 2 percent. High crude prices and a weak
US dollar have lead to cautious investing, and officials are on guard against economic decline and the forces of inflation. Overall economic activity has been bolstered by
household spending, aided by the recent stimulus package.
Fixed-rate mortgages climbed in late June and now hover in the low-to-mid 6 percent range, up a quarter point from the previous month. The
National Association of Realtors (NAR) has revised its forecast for Existing home sales in 2008, which have increased 2 percent from April to May. As it stands, the NAR is
anticipating an annual volume of 4.99 million units sold for 2008.
Finance Q and A:
Q: Can you still get a competitive mortgage with less than 20 percent down payment?
A: Yes! The Federal Housing Administration offers finance programs for qualified buyers with as little
as 3 percent down payment. The FHA has also temporarily increased its lending limits for the rest of 2008. This means that FHA loans are now available to more markets and in
more price ranges, creating great opportunities for buyers in 2008. The FHA has tentatively planned to revert back to the lower lending limits at years end.
Tip of the Month:
Your credit report offers detailed information on your borrowing and repayment habits. Lenders determine your credit worthiness by looking at the
FICO score found in your report. Scores range from 300 to 850, with higher numbers indicating a better credit history. According to Federal law, you are entitled to receive one
free credit report each year. Take advantage of this opportunity by visiting FreeCreditReport.com, and make sure you agree with what's on your report!