Mortgage interest rates last week continued to drop lower. Last week the Federal Reserve announced a launch of $400 billion program to increase longer-term bonds.

Interest rates were very volatile and will be expected to with the upcoming news this week. There is plenty of activity with the financial concerns in Europe.

If you are in a position to lock an interest rate just know that rates will spike much higher and faster then if they were to drop. Rates rise very quickly and are slow to lower. Regardless of where rates are now know that they are historically low and extremely favorable for the borrower.

If you have any questions about rates this week and the opportunity that may be available to you then call now toll free (866) 825-6261 and get a free, no obligation consultation now.

Home builders and housing permits are not looking very encouraging. Latest reports show that home builders are not very positive on the outlook for the housing economy now or in the near future.

It should come as no surprise that the lack of confidence by the home builders has resulted in less and less housing permits being requested and granted. Home sales have slowed down so much currently and there is very little incentive for builders to be taking risks with the current housing crisis.

With the foreclosures and the deep discounts on distressed properties there are very few that are willing to compete with a new home. Until we see an improvement in the housing market and clear recovery you likely won’t see new homes springing up.

Now if you are custom building and hiring out a builder then you are likely going to get a great deal and the builders don’t take as many risks with a custom build job. Don’t count on seeing too many new homes that are built on speculation in hopes that the perfect buyer will come by and purchase the home that is available.

If you have any questions about the current status of the housing market and how you may be able to benefit from the buyers market then simply call toll free (866) 825-6261. There is a great opportunity for purchasing and refinancing with the record breaking low interest rates of today.

The Federal Reserve agreed with a majority vote to keep the Fed Funds rate unchanged. This means that they are seeing the economy as still sputtering and trying to stimulate the economy with more spending by making interest rates lower or keeping them low.

The economy continues to stay in the dumps and the official language from the Feds statement are detailed below:

1. Economic growth “remains slow”
2. Unemployment rates “remain elevated”
3. The housing sector “remains depressed”

Not all signs indicate that the economy is in poor shape but until you start seeing jobs created and more spending it is very unlikely that you will see too much change in the economy and the housing sector specifically.

If you are not part of “main street” then consider yourself fortunate and start taking advantage of the many opportunities available to you. If you are not considered rich you may want to tighten your belt and prepare for a lengthy rough patch prior to recovery.

The Fed Funds Rate is not always going to parallel with mortgage interest rates. You can see clearly in the graph above how the spread between interest rates and the Fed Fund Rate will change over time. The Fed met today and announced Operation Twist.

Keep in mind that the mortgage interest rates are not set by the Feds. Rather the best way to keep an eye on what interest rates are doing is to watch the price of mortgage-backed bonds. There is very little consistency between the Fed Funds Rate and the mortgage interest rates where there they have been separated by as much as 5.29 percent, and have been as close as 0.52 percent.

Currently the spread/difference is 4% which means that there is plenty of room for the interest rates to move both up and down. Although based on the economy and the announcements from Ben Bernanke you could expect interest rates to remain low until the middle of 2013.

Interest rates continue to stay at record breaking lows. If you are in a position to purchase or refinance your home then you are very fortunate and will realize significant savings. With VA Home Loans the veterans are saving thousands of dollars with a simple streamline that lowers their interest rate and it takes very little effort to qualify. If you have a VA Loan and have questions simply contact a VA Loan Specialist for a free consultation (866) 825-6261.

Home builders are less and less confident in the market as time goes on. For all of those talking about a floor or a recovery you may be mistaken. The interest rates continue to go lower and provide all the opportunity in the world for a recovery yet the distressed homes continues to linger and keep the market down.

The risk that builders would have to take on right now simply don’t justify the reward. Credit is tight and competition from deeply discounted distressed homes have builders sitting on the sidelines willing to wait for better opportunities in the future. The home builder confidence report is made of 3 different surveys that include the following:

1. How are market conditions for the sale of new homes today?
2. How are market conditions for the sale of new homes in 6 months?
3. How is prospective buyer foot traffic?

The home builder confidence has been extremely low for years now and it looks like it may remain that way for years to come. The last time the confidence number was above 50 was April 2006. If you are shopping for a new home then look for some serious discount and deals because there are so many opportunities available to buyers today.

Last week interest rates rose just a bit with the concern in Europe seeming to ease. The additional stimulus that is being proposed in the U.S. also supported the slight increase in interest rates.

The Federal Open Market Committee will be meeting for a couple of days to announce a new stimulus plan. In the past couple of years whenever the Federal Reserve has stimulated the economy interest rates have fallen. With interest rates already at record lows what will happen this week?

There is some additional data to be released this week including the Existing Home Sales and Housing Starts but the focus will very much be on the world’s central bankers as they address the concerns in Greece.

If you are looking to refinance or lock in your interest rate on a purchase at this time just keep in mind that interest rates rise much faster than they fall and with rates at record lows you are in a great position now to lock things in and stop putting your interest rate at risk. If you have any questions contact a loan officer for a free consultation toll free (866) 825-6261.

All mortgage programs are hitting record breaking lows. That includes Adjustable Rate Mortgages and also 15 year fixed rate loans. The difference and spread of benefits and cost savings compared to a 30 year fixed rate is increasing. The advantage of taking a loan or mortgage product other than a 30 year fixed is much more appealing and much more often the better financial decision.

The savings one is getting and exploiting in this poor economy is tremendous. Whether you plan to stay in your current home long term or short term there is very often a loan product that is better for you than the 30 year fixed rate. Consider that with a 15 year fixed rate loan you will save over 46% in total payments saving. So, on a $200,000 loan you would save $94,000 in interest payments with a 15 year fixed rate loan.

Obviously with a 15 year loan your payment will be higher than any other mortgage program due to the shorter term. If you don’t plan to stay in the home long term or to pay off your home then it would be wise to consider an Adjustable Rate Mortgage based on how long you plan to keep the home to maximize your savings.

If you have any questions contact your loan officer and make sure you consider all of your options specific to your needs. You can always get a free consultation by calling toll free (866) 825-6261.

The foreclosures are slowing down nationwide and it’s definitely reflected in the top ten states in the country responsible for foreclosures. The graph above shows you how the activity is slowing down which many are trying to spin into a positive sign for a housing recovery.

The bigger news is likely the sharp increase in default notices which definitely indicates that there is not a strong recovery if any in the works. The states below are the current numbers from the states with the most foreclosure activity:

• California : 18 percent of bank repossessions
• Florida : 8 percent of bank repossessions
• Georgia : 7 percent of bank repossessions
• Michigan : 6 percent of bank repossessions
• Texas : 6 percent of bank repossessions
• Arizona : 6 percent of bank repossessions

The good news is if you’re a buyer you have many option available to you and an extremely strong buyers market with historically low interest rates maximizing your purchase power. The option to purchase one of many foreclosed or distressed homes is providing huge savings. The average savings on a distressed home is about 20 percent currently and could go higher if more foreclosure activity continues.

If you have any question as a buyer or homeowner looking to refinance then simply contact a loan officer now and get a free consultation, call now toll free (866) 825-6261.

Mortgage interest rates continue to go lower and lower and we hear about it all the time. Many are unable to refinance due to lack of equity and property values in their homes or their credit scores have taken a dip due to the poor economy. Unless you have a VA Home Loan that is, with a VA Loan you don’t need any equity or minimum credit score so if you have a VA Home Loan then you should contact the Best VA Loan Specialist’s in the country and find out how much money you could save today. Call toll free for a no obligation loan comparison (866) 825-6261.

In addition to the low mortgage interest rates there are other places to look for savings in such a difficult economy with the rates low in every category in addition to mortgages. NBC’s The Today Show aired a short piece with a few additional ways you could capitalize on during the slow economy.

• Refinance your vehicles while rates are low
• Transfer debts to low teaser rate offers
• Transfer savings to online banks that pay higher interest rates

Take a look at you finances and see if there is an opportunity for you to save money on lower interest rates but also you may be able to earn more by being a bit more savvy with your money. Every penny counts in this economy and many of the ideas are very simple and easy.

If you have a mortgage you should contact a loan officer today and see if there is an opportunity for you to capitalize on regardless of what type of mortgage you may have. All mortgage interest rates are at all-time lows and often it’s where you will see the biggest savings. Many that refinance are able to save hundreds of dollars every single month and ultimately they all save thousands of dollars over the life of their loan. Call now for a no obligation loan consultation toll free (866) 825-6261.

If you currently have an Adjustable Rate Mortgage (ARM) and you are past or coming up on the end of your initial unchanged rate time period then you should be aware that the Libor which many loans are tied to when calculating the interest rate is slightly higher.

First you need to find out how your interest rate will be calculated and which market it will be based off of. Not all are associated with the Libor such a VA Home Loan so identifying how your interest rate is calculated will be important. Some markets are more volatile than others.

This is the first time in over a year where the interest rate may possibly increase. If you are just coming out of your fixed rate period it’s possible that your interest rate will actually drop depending on when you got your original loan. The interest rates have come down further and further and it’s very possible that you got a loan with a higher rate and when it adjusts it will actually be lower.

LIBOR stands for the London Interbank Offered Rate. It’s a rate at which banks lend to each other overnight.

Expressed as a math formula, the adjusting ARM formula reads :

(New Mortgage Rate) = (2.250 percent) + (Current 1-Year LIBOR)

If you have an ARM and you are worried about the uncertainty it is always an option to refinance to a Fixed Rate which is also at all-time lows currently. Depending on how long you will be in your home it may be advantageous to simply stay on your ARM and go with the flow. If you have any questions simply contact a loan officer for a free consultation by calling toll free (866) 825-6261.