With moderate (at best) growth, and weak manufacturing and consumer demand, the American economy has been largely propped up over the last two years by the Fed's Bond-buying program called Quantitative Easing (QE). But this week, Federal Chair Janet Yellen announced the last round had reached an end.
The stock market reacted poorly midweek, but bounced back to close high on Friday thanks to strong corporate earnings. The market is likely to continue to slide--not exactly good news for investors BUT low stock prices generally mean low mortgage bond prices which could benefit home loan rates.
In the current housing market, home prices have increase by an average of just over 5%, the slowest gain in almost two years, but to be expected after the large jump seen in 2013. The August report from S&P/Case-Shiller 20-city Index showed that home prices fell from the 6.7% shown in July.
The good news is that it is still a great time to purchase or refinance a home. Loan rates are at some of their best levels of the year, and with the holidays right around the corner how nice would it be to get to skip a loan payment and do some shopping (a perk of refinance)? Or to stick a gigantic red bow on that new dream home and surprise your family?
Want to find out if you qualify for refinance or pre-qualify to buy a new home? Give us a call or stop by today and speak with any of our friendly, qualified loan professionals:
Patriot Home Mortgage, Pacific Group
20422 Beach Blvd #105, Huntington Beach