12/18/07 Good news for Mortgage Rates…
The European Central Bank (ECB) injected an unprecedented $500 Billion into the banking system. This follows the FED’s $28 Billion yesterday as well. This action is helping to calm worries about the credit industry and as a result rates have edged downward. Another effect is the separation between long-term fixed rates and Adjustable Rate Mortgages. This is due to the fact that this action is lowering short-term interest rates like the LIBOR index (London Inter-Bank Offered Rate). This will help borrowers whose adjustable rate mortgages are set to adjust between December 2007 and December 2008.
Today the FED is meeting about the mortgage industry in preparation for revealing a plan to further regulate tightening mortgage practices. The FED’s new regulations probably won’t be decided on or enforced until some time next year, but they are expected to be applied toward future loans made by banks, lenders and mortgage brokers.
I will continue to keep you up-to-date on any relevant mortgage-related news!
Curtis Price
AMP Mortgage Xpress
801-636-2446 Mobile
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