Don’t miss the boat again. If you have been waiting to take advantage of the historically low interest rates, do it now that rates have recently dropped.
FHA loan rates were at or near an all-time low for a number of months of the beginning of this year and Arizona mortgage companies were flooded with FHA streamline refinance applications. This resulted in a sizeable number of homeowners obtaining fixed FHA interest rates at or below 5%. Unfortunately, all good things come to an end and rates jumped up into the mid-to-high 5% range a few months ago. Because of zealous optimism and hope that rates would drop even lower, many people in Arizona were surprised and disappointed when rates suddenly increased.
If that scenario describes you, then you’re in luck. FHA rates have dropped again recently. If you would like to lower your interest rate through a no qualification FHA streamline refinance, you should do it now.
Rates will go back up. Many people are aware that this year’s historically low rates have been a result, in large part, to the Fed’s purchasing of Treasury securities. This plan is coming to an end. I quote a recent article by By Jeannine Aversa, AP Economics Writer.
“The Fed said it would gradually slow the pace of its program to buy $300 billion worth of Treasury securities and shut it down at the end of October, a month later than previously scheduled.
It has bought $253 billion of the securities so far. The program is designed to force interest rates down for mortgages and other consumer debt and spur Americans to spend more money.
“I think the Fed is feeling increasingly comfortable about where the economy is going,” said Mark Zandi, chief economist at Moody’s Economy.com. “For the first time in two years, the Fed is taking one step — a baby step — toward unwinding the massive stimulus.”
The Treasury-buying program’s effectiveness has been questioned on both Wall Street and Capitol Hill, with critics saying it looks like the Fed is printing money to pay for Uncle Sam’s spending binge.
As the Fed winds down the program, rates on government debt might edge higher, economists said. But the Fed appeared to feel sufficiently secure that higher rates would not jeopardize a recovery, they said.”
If you are thinking of taking advantages of the current low interest rates through a FHA streamline refinance, contact me today.
Steve Lines
FHA Mortgage Specialist
Cell: 480-329-3346
email: slines@bestFHAlender.com
www.bestFHAlender.com
http://twitter.com/stevelines
Academy Mortgage
Mesa, Arizona
