Interest Rates Drop
If you are in the market to refinance your current mortgage or purchase a home in Fort Lauderdale and South Florida now is the time to do it. Interest rates dropped dramatically yesterday and today due to the Fed’s announcement of “Operation Twist” which is the Fed’s selling of $400 billion of securities under 3 years maturity to buy a like amount in the 6-30 year range. The market was expecting this but not the move to reinvest principal payments into agency mortgage backed securities.
“Fed officials have become more concerned about the health of the mortgage market in recent months, with senior officials, including Mr. Bernanke, urging the rest of the government to find ways to support the sector. There has been growing concern in the mortgage industry in recent weeks that even as U.S. Treasury yields have been declining, mortgage rates haven’t fallen as much, preventing many homeowners from refinancing their home loans. The difference in yield between a 10-year Treasury note and a conventional 30-year mortgage has widened by almost half a percentage point……. Full Article