First Time Home Buyers
It’s been a crazy couple of weeks. Two Mondays ago we were assessing the impact of the governmental intervention with Fannie Mae / Freddie Mac. Last Monday was the Lehman Brothers and Merrill Lynch news.
We went into the weekend with the potential that Morgan Stanley might be next to fall……but we actually have different news to break this Monday.
The Mitsubishi Financial Bank announced that it is purchasing somewhere between 10-20% of the institution. This is a leading indicator that the government may have stabilized the financial sector.
Adding the AIG bailout last week, the Fed has taken on some very inflationary expenses. The Dollar is getting sold off today, commodity prices are up, and mortgage rates are on the rise in the short-term.
Overall, these moves could lead to lower rates, but the short-term volatility should push rates up today and in the immediate future.
Oil has surged to $107 after hitting $91 last week. It could be volatile. When it is volatile, the IHDA loan can become a very competive rate.
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