FHA Rates Continue to DROP!
First it was the news that the Federal Government was bailing out Fannie Mae and Freddie Mac.
Now, in an effort to steady the financial markets that are reeling from the news of collapse of Lehman Brothers and the sale of Merrill Lynch, there is a valid possibility that the Federal Reserve will cut interest rates.
The past two days have seen the biggest drop of the DJI average since the September 2001 terrorist attacks it plummeted 504 points.
The Fed announced recently that it was expanding its efforts to supply more cash to the financial system in order to help financial institutions that are facing problems as a result of the recent market turmoil. But, most experts believe that the current market commotion combined with the recent jump in unemployment will result in this not be enough to steady the market without a Fed rate cut.
The Federal Reserve met today, September 16th, and decided not to cut rates at this time although they acknowledged the increasing instability of the economy.
“Strains in financial markets have increased significantly and labor markets have weakened further,” they said. “Economic growth appears to have slowed recently, partly reflecting a softening of household spending. Tight credit conditions, the ongoing housing contraction, and some slowing in export growth are likely to weigh on economic growth over the next few quarters.”
The Fed’s next regularly scheduled meeting is on October 29th. However, it is possible that they may hold an emergency meeting before then to cut rates if needed.
In the last few weeks, we at Best FHA Lender have seen a dramatic drop in our FHA rates. Typically, we have the lowest FHA mortgage rate available. It has dropped by around 1.5% since the beginning of August. This is great news to those that are currently in the market to buy a new home as it greatly enhances the recent benefits put into play by the Housing and Economic Recovery Act.
In addition, this is fantastic news for existing homeowners with FHA financing as they can take advantage of the FHA streamline refinance program.
Contact us today using by filling in the form on the side of the page, call us at 480-344-3662 or email slines@bestfhalender.com.
