Portland or real estate listings and homes for sale, home buying, home selling information – Platinum Mortgage Group, Inc.

My New Blog

March 23rd, 2011 3:30 PM

Even though some home prices are averaging their lowest levels since 2002, now is a great time for buyers (or even sellers) to take advantage of the market! If one already owns a home and chooses to sell, they can "buy up" from their current price range and afford more "bang for their buck:" combined with the depressed home values, are depressed interest rates, which just adds to a buyers purchasing power. If you are a buyer, there are still some great loan programs out there to assist you with little to no downpayment and you will probably find that your new mortgage payment is equal to, if not less, than what you could expect to pay in rent! In fact, there are many low to zero down payment options offered by Platinum Mortgage Group available to today's Buyers and several ways to assist Sellers into their new home as well. Any way you cut it, there is a silver lining!

Posted by Jenny Santoro on March 23rd, 2011 3:30 PMPost a Comment (0)

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Federal Funds Versus Mortgage Rates

November 20th, 2007 8:10 PM

Over the years I have received numerous calls regarding the correlation (or lack thereof) between the Federal Funds versus the mortgage interest rates.

I'm sure, on at least one occasion, you have heard the news when the Feds reduce or increase the interest rates. The rate in question is the Federal Funds rate, which does not necessarily affect mortgage rates.

The mortgage rates are tied very closely to the yield on the 10-year Treasury Notes: the higher the yield, the higher the mortgage rates and, conversely, the lower the yield, the lower the mortgage rates tend to be.

As a general rule of thumb, Banks and Lenders usually place their fixed mortgage rates about two percent (2%) higher than the yields on the 10-year Treasury Notes. The yield on the Notes tends to be tied to economic data (unemployment rates and the consumer confidence index for example). Historically speaking, the weaker the economy, the lower the yield on the Treasury Notes. So, in other words, the worse off the economy is doing, the better (or lower) the mortgage rates tend to be.

In summary, when trying to "get a feel" for what mortgage rates are doing, look at our economy and look at the yield on the 10-year Treasury Notes. Or, better yet, call us! We receive rate sheets daily from many Banks and Lenders we work with and we would be happy to answer any questions you might have!

Posted by Jenny Santoro on November 20th, 2007 8:10 PMPost a Comment (0)

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