The Federal Reserve Bank is doing everything in their power to continue to lower the ceiling on mortgage rates. Last week they dumped another $75 billion into mortgage backed securities.
Since the beginning of March, Ben Bernanke and the Federal Reserve Bank have been adamant about pouring money into mortgage backed securities. The idea behind this is that if they dump money into these securities it will send rates lower which will eventually release all the pent-up demand in the housing industry. This is a great idea, but it is going to be very hard to get an individual to buy something for $200,000 when they refuse to even consider purchasing a $500 television.
If rates continue lower, many think that it will be too good to let this chance slip buy. If that thought process gets to the American mainstream then we could very well see a mini Refi boom. Last year's data shows that relocation was at its lowest percentage in the last 18 years. Many of these people want to move but they are afraid to because they won't be able to sell their current house in these market conditions.
Eventually the dam of pent-up demand will be broken, but no one really knows when that will be. It could be next month of if could be in three years. One thing is for sure, if you have been financially sound with your money, now is one of the best times in history to buy a home in America. Average mortgage rates are at 4.8% and houses are "on sale" everywhere. If you do a little bit of shopping and find a quality mortgage lender, you could get the deal of a century by buying or refinancing a home in 2009.
Subprime Blogger offers information on government refinance and how it may affect the economy and ultimately your life. The refinance appraisal step is the one area that is of great concern to Americans, but if you educate yourself, you can get through this step quite easily.
