Light Is Bright Green for Home Buyers!

The Fed indicated this week that they will indeed cut rates once again at their December 11th meeting, and both Stocks and Bonds moved higher in response.  This means that your home equity line of credit interest rate will go down, but it also means that 30-year fixed rates may increase for new buyers after the Fed Rate cut.  Your 30-year fixed rates are set by a combination of things, including by how mortgage-backed securities are selling on Wall Street, if foreign investors are buying our bonds, and inflationary signs in our economy.  Because this is a difficult formula to calculate, I use a financial service called The Mortgage Market Guide by Barry Habib to help in advising you whether to lock or float your interest rate. 

The economic report headlines showed a weak report for the Durable Goods Orders for October and this was positive for bonds.

Existing Home Sales for October dropped 1.2% to a 4.97 million pace, the lowest since 1999.  The inventory of unsold homes rose by 1.9% to 4.45 million, representing a 10.8 month supply, the highest since 1999.  While this is tough news for those seeking to sell their home, the good news for our home-buying clients is that there remains a wide selection of homes to choose from at bargain prices, combined with the still very low interest rates we can offer at this time.