Lowest Mortgage Rates
The lowest mortgage rates in over 60 years are here today. As great as the current mortgage refinance rates are, it was an economic catastrophe that enabled this situation.
The collapse of the housing market contributed mightily to the economic collapse in the USA at the end of 2008 and the beginning of 2009. This led to a deep recession which saw unemployment shoot up and businesses closing their doors.
The severe recession resulted in lending institutions freezing credit. Mortgage rates or other home loan rates meant nothing because mortgages were impossible to get. Unfortunately, it was not only those avaricious traders on Wall Street and mortgage lenders and brokers who suffered, but Main Street suffered as well.
Businesses couldn’t even get short term loans to pay their employees and many had to lay off workers while others had to close their doors completely. Only the Government’s intervention with massive liquidity prevented the total undoing of the economy as we know it.
The collapsing housing market was especially bad in those states that had seen runaway real estate prices in the previous decade culminating in all sorts of shady behavior from investors, banks and other mortgage lenders as well.
Financing and refinancing of home loans and mortgages were done haphazardly as greed ruled at every level. In those torrid real estate markets like Florida, California and Las Vegas, it was not uncommon for a person to purchase property with no money down, see the value of the property inflate astronomically, sell and get out, thereby pocketing huge amounts of money in only a few months.
Naturally, the temptation to repeat this activity was great and an increasing number of people engaged in it. Greed begot greed! Also, the mortgage brokers who made these mortgages and loans didn’t do any due diligence. They were too busy making loans and selling them on Wall Street which then packaged and sold them as Mortgage backed securities.
For a time, home and house prices soared but it had to end somewhere. It ended badly! When the end came, it came with a sudden thud with prices racing towards the floor. Financial companies stocks were been destroyed and so were those companies.
It took the Government to intervene to prevent the total capitulation of the economy. It lowered interest rates to the point where the lowest mortgage rates in over 60 years exist today. The current mortgage rates are not only the best fixed rate mortgages, they are the lowest interest only mortgage loans, and the lowest adjustable rate mortgages.
There are even first time buyer mortgages where special rebates are offered as incentives to get first time home buyers into the market to help jump start the economy.
Hopefully the worst is over. In fact, most economists predict that to be the case. The recovery, though, is not quite so obvious and may still have a while before it becomes evident. However, economists are projecting that economic activity will start to pick up and many businesses are positioning themselves for the recovery.
Mortgage brokers and lenders are aggressively competing again. The lowest mortgage rates are offered by many brokers like Ditech, Wells Fargo, Suntrust, US Bank, Citi, City, Nationwide Home, Chase, Gmac, and Bank Of America.
Refinancing // Mortgage rates // Bad credit mortgage refinancing // Home builders // Multiple Prime Contracts. // Fast Track Phased Construction // Linear Construction // Construction Management. // Single Contract System. // Home Construction. // Turnkey and Design-Build. // Sale by land owner // Land for sale by owner // Home/
|
