There are some good effects of the so called Obama Stimulus money on mortgage rates. The present thirty year fixed mortgage rates have gone down to it's lowest in more than fifty years according to a report from Bankrate.com. This really signals the best time to get mortgage refinancing especially if you are on the higher end of an adjustable rate mortgage. President Obama's stimulus money that has provided relief to the largest financial institutions in the US is starting to show some signs that it is helping mortgage rates to go down.
This drop in mortgage rates was brought about by the stimulus money that the federal government is pumping into the financial sector. The financial sector needs more money as they are reeling form the economic slump. When mortgage rates dropped to near all time lows, this would be the best the time to get your mortgage refinancing in order. Since the announcement of the government to buy more than I trillion dollars worth of toxic assets from the affected banks and other lending companies, this will bring about increase liquidity and improve credit conditions.
The Federal lending rate is at all time low of 0 to .25 percent and this has made most of the lending institutions to lower their lending rates. And when that happens the borrowing rates will definitely go down and more affordable. Though it is still difficult to qualify for a mortgage refinancing since the lending policies and guidelines are so stringent. If they can only be relax or loosen up then I it will benefit a lot of Americans and thus give the increase consumer spending that the experts are looking for.
The previous lows are in June 2003 and this January 5.28 percent according to Bankrate.com. Now the 30 year fixed rate is holding at 5.19 which are very low compared to the low of 6.77 in October 2008. At that time a 200,000.00 thousand dollar home loan would have meant a monthly payment of 1299.86. Now with the current mortgage rates of 5.19 percent, the monthly payment for the same loan would be 1.096.99. (This was taken from the article by Catherine Clifford, CNNMoney.com staff). This really shows that the Obama stimulus money is lowering borrowing rates.
While most people are still skeptical about the Obama stimulus money to work well in lowering mortgage rates, this is evidently signs of progress in making lending more affordable and jumpstart the economic recovery. The dropping of the borrowing rate is attributable to the Obama stimulus money but that would still be open to debate. But the fact of the matter is the dropping cannot be denied as a result of the bail out and stimulus money being given to lenders and financial institutions.
The Federal lending rate is at all time low of 0 to .25 percent and this has made most of the lending institutions to lower their lending rates. And when that happens the borrowing rates will definitely go down and more affordable. Though it is still difficult to qualify for a mortgage refinancing since the lending policies and guidelines are so stringent. If they can only be relax or loosen up then I it will benefit a lot of Americans and thus give the increase consumer spending that the experts are looking for.
The previous lows are in June 2003 and this January 5.28 percent according to Bankrate.com. Now the 30 year fixed rate is holding at 5.19 which are very low compared to the low of 6.77 in October 2008. At that time a 200,000.00 thousand dollar home loan would have meant a monthly payment of 1299.86. Now with the current mortgage rates of 5.19 percent, the monthly payment for the same loan would be 1.096.99. (This was taken from the article by Catherine Clifford, CNNMoney.com staff). This really shows that the Obama stimulus money is lowering borrowing rates.
While most people are still skeptical about the Obama stimulus money to work well in lowering mortgage rates, this is evidently signs of progress in making lending more affordable and jumpstart the economic recovery. The dropping of the borrowing rate is attributable to the Obama stimulus money but that would still be open to debate. But the fact of the matter is the dropping cannot be denied as a result of the bail out and stimulus money being given to lenders and financial institutions.
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