It has been a long time since someone has been able to lock in a 5.25% fixed rate on a mortgage in Utah, but the wait is over. I have locked several loans in the last week at that exact rate. With the recession finally being officially called it seems investors had enough of the stock market and started pouring huge sums of money into the bond market which has paid out as much as 7% so far this year and gaining every day.
The government is even buying it's own bonds in an attempt to give some liquidity to the bond funds and lower yields that were stuck at an unnatural point much higher then where the market indicators show they should be.
We broke through that invisible floor last week when the government announced its pledge to spend up to 600 billion to purchase bonds and mortgage backed securities. That coupled with the recession call and continued economic weakness all have contributed to the bottom falling out of long term fixed rates.
If you are at or above 6% you can really save money by locking into one of these incredible 5.25% 30 year fixed loans or you can do as many of my clients have done and shorten your term to a 25 or 20 year loan while maintaining close to the exact same payment.
If you are considering home improvements, debt consolidation, or buying a home there really will not be a better time to lock in your low rate I can promise you that much.
Thanks for those of you that have called in and please if you haven't yet called give me a quick ring to see what we can do to save you money 801-655-5111. We can still get you closed by Christmas if you call me in the next few days and you wont have a January payment so it will give you time to catch up from the Christmas whirl wind of spending and fun.
Happy Holidays Everyone.
Stetson Lowe - Utah Mortgage Insider - www.utahloantips.com - 801-655-5111
Here is a news clip that explains the market right now and applies fairly well to whats happening in Utah. The only part I would disagree with is when she says the bank are requiring assets right now, I just got 3 loans approved with showing $1 in their bank account, score and a good payment history is still what the banks are looking for the most.
