Comparing July's conforming mortgage rates to today's average rates, there's a 1.5 percent difference in favor of homeowners. Rate drops like that make big differences in a household budget. Look at these before-and-after payments, based on rates from the chart: $150,000 mortgage ($144 savings/month) July 2008: $958 monthly February 2009: $814 monthly $250,000 mortgage ($240 savings/month) July 2008: $1,597 monthly February 2009: $1,357 monthly $350,000 mortgage ($335 savings/month) July 2008: $2,235 … [Read more...]
How Today’s Federal Reserve Meeting Could Change Home Affordability
January 28, 2009 by Leave a Comment
The Federal Open Market Committee adjourns from its 2-day meeting today. The monetary policy-setting group is expected leave the Fed Funds Rate within its current target range of 0.00-0.250 percent. This is the lowest range for the Fed Funds Rate in history and, frankly, there isn't much room left to go lower. Therefore, markets aren't really concerned about what happens to the benchmark lending rate today. Instead, markets will focus on the Fed's ideas to revive the U.S. economy. In its post-FOMC press … [Read more...]
