I take pride in providing useful information that you will find helpful when making decisions regarding your mortgage. My monthly newsletter covers different topics each month to help increase your knowledge of the mortgage industry and recent industry happenings. Please take a moment to review the monthly newsletter and click on the links on the left hand side for more news and resources. Feel free to pass this newsletter along to any friends and family members who might find it useful and contact me with any questions you may have.
Thank You,
Michael Schenck
DID YOU KNOW
The Federal Reserve entered a new era last week, reducing its benchmark interest rate so low that it will have to reach for new and untested tools in fighting both the recession and downward pressure on consumer prices.
The central bank lowered its target for the overnight federal funds rate to a range of 0 to 0.25 per cent, a record low, virtually bringing the United States to the zero-rate policies that Japan used for six years in its own fight against deflation. The rate had previously been 1 per cent.
The move, which affects the rate at which banks lend their reserves to one another, was expected and, to a large degree, symbolic. Demand for interbank loans has been so low the actual Fed funds rate has been far below the target for a month and recently hovered at barely 0.1 per cent.
In its statement announcing the cut, the Fed's Open Market Committee made it clear it still had ammunition with which to stimulate the economy and referred to the wide array of new lending programs that essentially allow it to pump money directly into financial institutions.
WHAT DOES THIS MEAN FOR YOU
While rates on adjustable-rate mortgages based on the U.S. Treasury Index have immediately fallen, the rates for long-term fixed loans are expected to come down over the next few weeks. Whether you want to purchase or refinance a mortgage loan now is the time to take advantage of the low interest rates. As you know the loan process can be very timley so it is important to call and initiate your application as soon as possible to insure getting a current market interest rate. Call me today to get a custom mortgage rate quote that requires no costs or obligation.
Keeping You Informed
Sterling Financial Services, LLC is dedicated to keeping you informed of the latest market trends and mortgage options. Visit us online at sterlingrates.com or call today at (504) 889-0737, to obtain custom loan options designed to fit your needs and help you obtain your home goals.
