September 2008 - Mortgage Rate report

With August behind us it’s time to report on what’s happened in the last month. Here goes.

Mortgage interest rates were steady for the month of August 2008. They hardly moved at all until the end of the month. At the end of the month they dropped about 1/8 of a percentage point. That’s really not much.

That’s good news though as it means rates are historically low. There is still a big opportunity there for people to refinance their variable rate mortgages at good rates.

It seems the economy may be improving as well. If it’s not improving than at least we are not in a downward spiral at this moment in time. The American dollar seems to be doing the same thing, slowing it’s high speed drop in value. It completely depends on how you look at it whether this is good news or bad.

If inflation continues we will see rates rates rise as well. I hope we don’t see any more inflation. I’m hurting just as much as you are with the rising cost of everything I buy. It’s scary but our economy and mortgage rates are stuck in neutral at the moment.

It’s anyone’s guess as to where we go from here. I would like to think that since the economy has been going down for so long as we are and have been for some time now in neutral we will start heading up.

I find it odd that there has been such a huge drop in prices in homes and not a big upswing in mortgage rates. Usually there is a direct correlation.

This is important stuff to understand. Check out why Fannie Mae and Freddie Mac are so important to you and your mortgage rates.

Fidelity Real Estate
Scott@CTHouseHunting.com
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