Well, the Fed has finally done something that should make all homeowners and prospective homeowners happy...they lowered their target for the Federal funds rate to 0%-25% While that does not DIRECTLY impact mortgage interest rates (and it would take pages of economic and fiscal speak to explain why) yesterdays' move HAS had a positive impact. Two weeks ago I was able to offer clients rates in the mid 5% range. This morning I logged into my favorite wholesale lender to see 4.5% with NO ORIGINATION FEE!!!! That's unprecedented.
Existing homeowners in Spokane, Spokane Valley, South Hill, Mead, Nine Mile Falls, and other neighborhoods in Washington, Idaho, and California need to contact their favorite lender ASAP to see if they can benefit from a refinance. I've seen this refinance rush many times in the past and those that wait to call miss the low rate opportunity as lenders get inundated with loan applications. Keep in mind that lenders have been cutting staff dramatically the last few years so there is a shortage of true mortgage professionals still in business to help.
Prospective homeowners - this may be a once in a lifetime event. You've got foreclosures and FSBO's competing with the normal resale market creating a serious advantage in your favor. Throw in the low interest rates and you've got a unique opportunity that won't last long. If down payment is an issue - no worries. There ARE still some 100% financing options available (limited, I'll admit, but available none the less), and FHA loans only require a 3.5% down payment.
Real estate agents - look like a HERO to your clients! Proactively inform them of this sudden rate drop. If they've already locked in with their lender they need to have a conversation to see what can be done to lower the rate or maybe get a second opinion. If you have a database of past clients - notify them! What better excuse to contact your great clients than to save them some money. Well, I've got to sign off and get to work! Have a great day. If you have a home loan, you need to consider a refinance as well.