Eugene Oregon Real Estate - Mortgage Rates Update
Posted by Dennis Pease on Sunday, November 2nd, 2008 at 3:03pm.Mortgage rates are just a bit higher today over last Friday, (see rates below), due primarily to lower pricing in the bond market. However, this is no surprise following another short term rate cut by the Federal Reserve (FOMC) on Wednesday. As I've mentioned before, these rate cuts have no direct effect on mortgage rates, but we inherently see mortgage rates jump up for a short time due to the inflationary nature of the Fed's rate cut.
There have been a couple of positive reports this week worth noting. On Wednesday the Commerce Dept reported that the “Durable Goods Orders” (orders for goods expected to last longer than 3 years) were up 0.8% when they were expected to fall 0.1%. This indicates more activity in the manufacturing segment than was previously thought. Also, on Thursday a reading of the 3 rd quarter GDP (Gross Domestic Product, which is the measurement of all goods and services produced in the U.S. ) revealed a decline of 0.3%. I know this doesn't seem like good news, but it was expected to decline 0.5%.
There are numerous small indicators out there pointing toward better times, and it's obvious that many of the steps that are being taken are beginning to help. However, as I said several weeks ago, it will take some time yet before we see measurable results, and even longer before we see any light from the other end of the tunnel. Part of the problem is that this “global economy” is going to need global solutions. It's no longer solely a U.S. problem. I'm inspired however, by the cooperative efforts in some parts of the world.
The credit crunch has eased a bit due to the influx of various governments' funds into the banking systems here and abroad, and the lowering of interest rates between banks. Also, here in the U.S. the Federal Reserve has initiated it's “commercial paper” program, offering very competitive rates. (Commercial paper is short-term debt that big businesses and financial institutions use to fund day-to-day operations). These low rates will help move other rates downward, help stimulate business, and free up institutional funds for other lending. All this helps relieve the credit crisis.
It's all good!!! Not fast enough, but good none-the-less.
Have a terrific weekend!
The following rates are based on 30 day locks with no discount points, as of this morning. They are not come ons, they are the rates your buyers will most likely get from a reputable lender, regardless of what is advertised. Certainly there are other specialized programs available, depending on the qualifications of the buyer.
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30 year fixed conforming = |
6.375% |
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|
15 year = |
6.000% |
|
|
3/1 ARM = |
6.750% |
|
|
5/1 ARM = |
6.625% |
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Jumbo fixed = |
7.000% |
|
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Jumbo ARM = |
7.250% |
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FHA/VA 30 year fixed = |
6.500% |
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|
Prime rate is currently = |
4.000% |
Authored by Lorin Wamsley, CMPS - Senior Mortgage Consultant, Precision Funding
Phone: 541-681-8787
Dennis Pease - Real Estate Broker invites you to see more Eugene Real Estate information and All the Area Real Estate Listings . If you are looking for a mortgage consultant, call Lorin at the number above and tell him you saw him here.
3 Responses to "Eugene Oregon Real Estate - Mortgage Rates Update"
That’s great, I never thought about Eugene Oregon Real Estate - Mortgage Rates Update like that before.
Posted on Tuesday, February 17th, 2009 at 2:53 AM.
I said several weeks ago, it will take some time yet before we see measurable results, and even longer before we see any light from the other end of the tunnel.
Posted on Friday, June 19th, 2009 at 12:37 PM.
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Wow, I never knew that Mortgage Rates. That’s pretty interesting...
Posted on Tuesday, February 17th, 2009 at 2:51 AM.