Mortgage Interest Rates Drop

If you have been sitting on the fence and waiting for the mortgage interest rates to go lower before purchasing a Spring Texas home, the time to ACT is NOW.

Last week after the FED announced they would purchase $600 Billion of Mortgage-Backed securities backed by Fannie Mae, Freddie Mac, and Ginnie Mae, the mortgage interest rates dropped.

The move by the FED was designed to help increase the availability of credit while lowering the interest rate. And it certainly has lowered the interest rate. Not just by a fraction but by 1% from 6.5% to 5.5%.

Unlike a retail store that advertises a price for a certain period of time, interest rates are unpredictable and move on a daily basis. And to make matters worse, there is no one out there that can accurately predict how long the mortgage interest rates will stay at the low to middle five-percent range.

Thus if you are waiting for a good time to buy a Spring Texas home, the time is now. Get out there and  purchase: 

• before the home mortgage interest rates increase
• before the FHA minimum loan down payment increases on January 1st, 2009
• before the first-time home buyers tax credit disappears on July 1, 2009