Archive for the 'Mortgage and Lending' Category
What does the .75 Feds rate reduction mean to home buyers?
March 21st, 2008 categories: Mortgage and Lending
From one of my lenders, Diane Gerdes from The Mortgage Advantage-TMA
This holiday weekend has ended on a calm note after a colorful week. The Fed is allowing Fannie and Freddie to carry fewer reserves, therefore freeing up the much needed $200 billion dollars to buy mortgage loans. Mortgage guidelines are changing hourly and there is chatter that the Fed will supervise lenders and their mortgage criteria. The Fed is also lending billions of dollars to Wall Street firms that are cash strapped because of the investors jumping to any investment that does not say “mortgage.” The Fed is trying to overt another rip off (oops, I meant fire sale) like the one this week when J. P. Morgan Chase picked up the once mega Bear Stearns (known for their mortgage securities investments) for a mere song. J.P. Morgan along with Bank of America and Wells Fargo will have loads of money to buy Easter eggs this weekend with the gazillion dollars they made on the initial public offering of Visa.
FYI: The Fed’s dropped the Fed rate by .750 this week. Yes, interest rates have gotten better. No, they are not at 4%.”
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