Lowest Fed Funds Rate in History

These are incredible times! Recently, the Federal Reserve cut interest rates by .75%, bringing them down to .25%...the lowest Fed Funds Rate in history.

Additionally, the Fed has been purchasing Mortgage Bonds which has helped drive interest rates to the lowest levels seen in our lifetime. While this is great news, we must remember that these windows of opportunity may exist for a very brief period of time. And the interest rate market has recently been incredibly volatile, with spikes of .25% within hours and .50% within days.

As rates can change quickly, the best advice for buyers is to lock early and get all of their paperwork in immediately to capture and protect the best rates ever. Also, I expect that pipelines will start to bulge and push many lenders to their limit.

Buyers need to ensure that they are prepared with all income and asset documentation needed to process their application immediately to avoid a delay in closing. Although it might seem obvious that buyers should act quickly, it is sometimes human nature to get greedy and try to capture the very bottom of the market.

There are many problems with that risky strategy, the least of which is that we don't know where the bottom is until it is already in the rear-view mirror. With rates at all-time lows, we know this will generate more buyers.

Anyone wanting to wait for better rates is taking a huge risk. Many lenders are offering rates near 5% on conforming 30-year fixed mortgages, with government-sponsored programs not far behind. Also, think about your personal situation right now. We might be able to help you save money on your own mortgage.

Call me today and we can explore what options are available for you.

Sincerely,
Lisa Warren
Southlake Branch Manager
Silver Oak Mortgage
(817) 410-2518
lwarren@somlp.com
www.silveroakmortgagelp.com