In the last few days you may of heard that rates were going to quickly going down to 4.50%. I received several calls from clients asking advice if they should refinance or wait to lock their loans.
Here is the new as I have heard it. The US Treasury is in discussion with different Banks to encourage them to supply rates down to 4.500%. The Treasury Department would do this by purchasing mortgage-backed securities from the now nationalized Fannie Mae and Freddie Mac. This giving a bigger supply of credit. This story wasn’t supposed to come out until finalized but you know how they leak stories.
This new plan will be for home buyers only. It will not available for bailing homeowners facing foreclosure or for refinancing. There are lots of different stories going around. One station said the rates may only be available for new homes. Which will not help the existing homes values. But nobody knows for sure until the plan is formalized. It’s like the bailouts where will the money actually go and will it help us?
If the Treasury can get this done then this will help home buyers get into homes at very low prices. Good news for Metro Detroit Real estate and Metro Detroit area home buyers. Lower interest rates will make many of these Michigan foreclosed homes even a better buy.
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