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MORTGAGE LOANS
Lorcan Lucey 843-884-8133
Bobby Medlin
can help you with these programs.
SunTrust Mortgage
276 E. Bay Street
Charleston, SC 29401
PH. 843.425.6690
FX. 843.577.0131
EM. bobby.medlin@suntrust.com
Apply online at
www.suntrustmortgage.com\bmedlin
A rate
sheet is attached for your reading pleasure. And now, the pertinent
news affecting our world today…
“The Federal Reserve
kept its key interest rate near 0% and appeared ready to do so for the
foreseeable future, after declaring Wednesday that despite signs of
improvement, the nation's economy is likely to remain weak. The fed
funds rate is used as a benchmark to determine interest paid by
consumers on credit cards and home equity loans, as well as the rate
paid on many business loans.” – CNNMoney.com 12/16/09
In general, it’s good
news that the “key interest rate” will stay near 0%, but it doesn’t
prevent inflation from mounting which will surely spur the Fed to
begin hiking rates. In addition, the Fed’s stance doesn’t mean first
mortgage rates will remain at these ultra-low levels. They can and
likely will edge up in the new year as most economists, bankers and
government officials agree. In 2009, the government was able to
suppress rates to a degree, but their best tools for doing so – their
re-purchase of government issued debt – is quickly fading as was
intended over time.
In the meantime, we
will continue to enjoy what we have… very good rates. They have
ticked up about a quarter-point in the past week but this is some of
the natural ebb and flow which will likely evolve into a trend-line
pointing north as 2010 unfolds. Nothing beats a strong catalyst –
like the expected rise in mortgage rates - to get prospective buyers
off the fence. Let’s leverage it together.
For those waiting for a further drop in
home prices: A 10% drop in
home value does not offset a 1.0% rise in interest rates. For example,
a
sale price of $225,000 with an interest rate of 5.0% has a lower
payment
than a sale price of $202,500 with a higher rate of 6.0%.
Helene
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