Important News on Interest Rates

      I'm sure you've heard about the Continuation of the Temporary Tax Cut of 2011 ?

Did you know that as a result of that The Federal Housing Finance Agency has directed Fannie Mae and Freddie Mac to increase loan guarantee fees in what they are calling a G-Fee. In turn investors have been given short notice and they have begun to incorporate the G-Fee by increasing their pricing to all lenders. This price increase will affect all Conforming Conventional Fixed Rate and ARM products and has caused rates to go up approx. .25%! Government Loans and Jumbo pricing will not be affected at this time.

On January 26, 2012, the Federal Reserve Board released their policy statement and said there will be "exceptionally low levels for the Federal Funds Rate at least through 2014." Extending the zero interest policy until 2015 provides an accommodative monetary policy to keep the economy growing. The Federal Funds Rate is the rate banks charge each other and does not determine Mortgage Interest Rates.

With the GREAT news on HOME SALES and Interest Rates at HISTORIC LOW RATES,  NOW is an Excellent Time to Buy or Sell a Home.

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