Interest Rate Tidbits
January 2008

The good news so far this year is that interest rates are low, low, low; we’re under 6.00% for a 30 year fixed! The Fed is talking about lowering rates another .50% this month, so I will keep you posted as the news comes available.

Another important announcement is that Fannie Mae and Freddie Mac have expanded the use of risk-based pricing. What that means is they’re interest rates are FICO driven. Before you needed to have 575 or higher to get the going market rate, now if the client has a FICO under 680 and putting less than 30% down there will be interest rate adjustments that correspond with the clients’ overall scenario.

Keep in mind FHA is not FICO based, so if you have someone under a 680 FICO, they can still get a rate in the low 6’s for 30 years.

Attached are this month’s “Sales Update” and “Real Estate Trends”. As always, they both have some great content for this month. Don’t forget the “Real Estate Trends” can be used by you to send out as an Item of Value to your client database.

If I can be of assistance to any of your clients, friends, or family members, give me a call, I’d be more than happy to help!