Kansas City Mortgage Loan Rates Drop With Treasury Seizure of Fannie Mae & Freddie Mac
Kansas City Real Estate Thoughts...
The United States Treasury's seizure of Fannie Mae and Freddie Mac led to a swift drop in Kansas City mortgage interest rates today. Before speaking with a local mortgage lender, I read where a mortgage broker in Los Gatos California was saying that he didn't expect rates to drop much at all with the news of the U.S. Treasury seizure. After speaking with Alan Scarpa of National Bank of Kansas City around 9 AM this morning I was informed that interest rates had dropped nearly 3/8% on conventional 30-year fixed rate loans that he was quoting (for most loan scenarios). Alan Scarpa said he's only aware of a few instances in 10 years where rates dropped as much in even a 7 day period. It's impossible to say whether this drop in interest rates is temporary or a sign of even lower rates in the coming days and weeks. We all know that it takes longer for rates to drop than it does for them to rise. So based on the size of today's rate drop I wouldn't be surprised if mortgage rates continued to dip further in the coming weeks and we end up seeing rates in the 5's by month's end. The seizure of Fannie Mae and Freddie Mac could also end up being the trigger for a rebound of the Kansas City housing market. Of course there are plenty of risks the government is taking with this move and we won't know the results for some time but anyone in Kansas City who is considering buying a home or refinancing their current loan should prepare to take the leap.
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