Florida FHA Loan Limits are going DOWN for 2009

It is important for Florida Home buyers to know that Florida FHA loan limits are going down for 2009.  For 2008 Seminole County loan limits, it is a HUGE drop.  The new loan limits per county are as follows:

MSA Name	MSA Code	Division	County Name	County Code	State	One-Family	Two-Family	Three-Family	Four-Family	Last Revised	Limit Year
GAINESVILLE, FL (MSA)	23540		ALACHUA	001	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
JACKSONVILLE, FL (MSA)	27260		BAKER	003	FL	$304,750	$390,100	$471,550	$586,050	01/01/2009	CY2009
PANAMA CITY-LYNN HAVEN, FL (MSA)	37460		BAY	005	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
NON-METRO	99999		BRADFORD	007	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
PALM BAY-MELBOURNE-TITUSVILLE, FL (MSA)	37340		BREVARD	009	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
FORT LAUDERDALE-POMPANO BEACH-DEERFIELD BEACH, FL	33100	22744	BROWARD	011	FL	$345,000	$441,650	$533,850	$663,450	01/01/2009	CY2009
NON-METRO	99999		CALHOUN	013	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
PUNTA GORDA, FL (MSA)	39460		CHARLOTTE	015	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
HOMOSASSA SPRINGS, FL (MICRO)	26140		CITRUS	017	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
JACKSONVILLE, FL (MSA)	27260		CLAY	019	FL	$304,750	$390,100	$471,550	$586,050	01/01/2009	CY2009
NAPLES-MARCO ISLAND, FL (MSA)	34940		COLLIER	021	FL	$448,500	$574,150	$694,000	$862,500	01/01/2009	CY2009
LAKE CITY, FL (MICRO)	29380		COLUMBIA	023	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
ARCADIA, FL (MICRO)	11580		DE SOTO	027	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
NON-METRO	99999		DIXIE	029	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
JACKSONVILLE, FL (MSA)	27260		DUVAL	031	FL	$304,750	$390,100	$471,550	$586,050	01/01/2009	CY2009
PENSACOLA-FERRY PASS-BRENT, FL (MSA)	37860		ESCAMBIA	033	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
PALM COAST, FL (MICRO)	37380		FLAGLER	035	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
NON-METRO	99999		FRANKLIN	037	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
TALLAHASSEE, FL (MSA)	45220		GADSDEN	039	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
GAINESVILLE, FL (MSA)	23540		GILCHRIST	041	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
NON-METRO	99999		GLADES	043	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
NON-METRO	99999		GULF	045	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
NON-METRO	99999		HAMILTON	047	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
WAUCHULA, FL (MICRO)	48100		HARDEE	049	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
CLEWISTON, FL (MICRO)	17500		HENDRY	051	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
TAMPA-ST. PETERSBURG-CLEARWATER, FL (MSA)	45300		HERNANDO	053	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
SEBRING, FL (MICRO)	42700		HIGHLANDS	055	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
TAMPA-ST. PETERSBURG-CLEARWATER, FL (MSA)	45300		HILLSBOROUGH	057	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
NON-METRO	99999		HOLMES	059	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
SEBASTIAN-VERO BEACH, FL (MSA)	42680		INDIAN RIVER	061	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
NON-METRO	99999		JACKSON	063	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
TALLAHASSEE, FL (MSA)	45220		JEFFERSON	065	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
NON-METRO	99999		LAFAYETTE	067	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
ORLANDO-KISSIMMEE, FL (MSA)	36740		LAKE	069	FL	$274,850	$351,850	$425,300	$528,550	01/01/2009	CY2009
CAPE CORAL-FORT MYERS, FL (MSA)	15980		LEE	071	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
TALLAHASSEE, FL (MSA)	45220		LEON	073	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
NON-METRO	99999		LEVY	075	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
NON-METRO	99999		LIBERTY	077	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
NON-METRO	99999		MADISON	079	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
BRADENTON-SARASOTA-VENICE, FL (MSA)	14600		MANATEE	081	FL	$285,200	$365,100	$441,300	$548,450	01/01/2009	CY2009
OCALA, FL (MSA)	36100		MARION	083	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
PORT ST. LUCIE-FORT PIERCE, FL (MSA)	38940		MARTIN	085	FL	$316,250	$404,850	$489,350	$608,150	01/01/2009	CY2009
MIAMI-MIAMI BEACH-KENDALL, FL METROPOLITAN DIVISIO	33100	33124	MIAMI-DADE	086	FL	$345,000	$441,650	$533,850	$663,450	01/01/2009	CY2009
KEY WEST-MARATHON, FL (MICRO)	28580		MONROE	087	FL	$529,000	$677,200	$818,600	$1,017,300	01/01/2009	CY2009
JACKSONVILLE, FL (MSA)	27260		NASSAU	089	FL	$304,750	$390,100	$471,550	$586,050	01/01/2009	CY2009
FORT WALTON BEACH-CRESTVIEW-DESTIN, FL (MSA)	23020		OKALOOSA	091	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
OKEECHOBEE, FL (MICRO)	36380		OKEECHOBEE	093	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
ORLANDO-KISSIMMEE, FL (MSA)	36740		ORANGE	095	FL	$274,850	$351,850	$425,300	$528,550	01/01/2009	CY2009
ORLANDO-KISSIMMEE, FL (MSA)	36740		OSCEOLA	097	FL	$274,850	$351,850	$425,300	$528,550	01/01/2009	CY2009
WEST PALM BEACH-BOCA RATON-BOYNTON BEACH, FL METRO	33100	48424	PALM BEACH	099	FL	$345,000	$441,650	$533,850	$663,450	01/01/2009	CY2009

TAMPA-ST. PETERSBURG-CLEARWATER, FL (MSA)	45300		PASCO	101	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
TAMPA-ST. PETERSBURG-CLEARWATER, FL (MSA)	45300		PINELLAS	103	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
LAKELAND, FL (MSA)	29460		POLK	105	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
PALATKA, FL (MICRO)	37260		PUTNAM	107	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
PENSACOLA-FERRY PASS-BRENT, FL (MSA)	37860		SANTA ROSA	113	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
BRADENTON-SARASOTA-VENICE, FL (MSA)	14600		SARASOTA	115	FL	$285,200	$365,100	$441,300	$548,450	01/01/2009	CY2009
ORLANDO-KISSIMMEE, FL (MSA)	36740		SEMINOLE	117	FL	$274,850	$351,850	$425,300	$528,550	01/01/2009	CY2009
JACKSONVILLE, FL (MSA)	27260		ST. JOHNS	109	FL	$304,750	$390,100	$471,550	$586,050	01/01/2009	CY2009
PORT ST. LUCIE-FORT PIERCE, FL (MSA)	38940		ST. LUCIE	111	FL	$316,250	$404,850	$489,350	$608,150	01/01/2009	CY2009
THE VILLAGES, FL (MICRO)	45540		SUMTER	119	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
NON-METRO	99999		SUWANNEE	121	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
NON-METRO	99999		TAYLOR	123	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
NON-METRO	99999		UNION	125	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
DELTONA-DAYTONA BEACH-ORMOND BEACH, FL (MSA)	19660		VOLUSIA	127	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
TALLAHASSEE, FL (MSA)	45220		WAKULLA	129	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009
NON-METRO	99999		WALTON	131	FL	$325,450	$416,600	$503,600	$625,850	01/01/2009	CY2009
NON-METRO	99999		WASHINGTON	133	FL	$271,050	$347,000	$419,425	$521,250	01/01/2009	CY2009

Orlando Real Estate Market: What we can Control…

By Michael Dale – Vice President, Dave Brewer Realty, Inc.

Wow, given the recent dramatic economic events where do I begin; the stock market, the mortgage market, the secondary mortgage market as represented by Fannie Mae and Freddie Mac?

Each of the aforementioned have so overwhelmingly impacted our economy let alone our housing market. Many I have conversed with this past week are angry and frustrated. These institutions are so mammoth and to most of us represent entities that we can’t touch let alone think of impacting or affecting change upon. And then when you add the additional frustration…

Read the whole blog post and see the TELLING historic chart here:

Orlando Real Estate Market: What we can Control…

The Truth about predicting Orlando Mortgage Rates

Weeeeeee……

Not only is that what the snail said as he hitched a ride on the back of a turtle, [laugh, that is as funny as it gets] but it is what most of us are saying about these market dips and jumps! It’s important to remember that markets are unpredictable and nobody knows what will happen tomorrow.

Unfortunately, that doesn’t stop the ‘experts’ from trying.

An obvious example comes from back in May. As oil crossed the $120 per barrel mark [eventually arriving at $147…ouch…] a Goldman Sachs ‘expert’ was quoted as saying that $200 oil was “likely”.

Well, at that time it seemed logical, did it not?

A mere 5 months later, that seems downright laughable. Oil is off by more than 40% since that day. “Well, that is a unique case, Chris.” Huh… wanna bet? There are hundreds of examples just like this one.

Every day, economic experts and analysts are on television, pontificating to us about what’s going to happen:

• They tell us when housing prices will bottom out
• They tell us when stock markets will rebound for good
• They tell us what the economy will do over the next 12 months

But none of them operate with the proverbial crystal ball — it’s all on “gut”. But, I guess I cut them a little slack… I mean, after all, in a world of 24-hour news… they gotta have someone say something new don’t they. Oh, the monster we have created! ROFL

Want another example you say? [Herb, they want another example…] How about today’s CNNMoney.com. In the after math of the govt’s financial ‘response’, a mortgage analyst predicts 7% interest rates over the next 6 months. This would represent a 1.5% increase from recent lows. I guess it is possible, but not ‘likely’ [Oops, i just did it, geez.] Orlando FHA loans have been low too.

Anyway, the rate prediction may be accurate, but it may not. When will we know? In, say, about 6 months i reckon!

But what we know today, though, is that Orlando mortgage rates are all over the place — just like the stock market. One day up, another day down. And nobody knows what they’ll do tomorrow.

Predicting the future has always been an inexact science… maybe art would be a better word… but that won’t stop the ‘experts’ from trying. And the experts are wrong as often as anybody else.

That all being said, my ‘expert’ opinion [don’t worry… the irony is not lost on me] is to not let market conditions trump your personal conditions. Logically, we ALL should be buying Orlando real estate right now… buy low – sell high, right? But the truth is, our personal finances are a very emotional issue… not a logical one. To think otherwise would be foolhardy. If the time is right to buy a house for you… buy one and feel fortunate that the housing gods* are in alignment with you. If it is not the right time for you, don’t do something foolish just because the deals are everywhere!

Just my .02 =0)

Chris

*for the record, I am a Christian and do not believe in said ‘housing gods’… but rather one sovereign God. This statement is made for the entertainment value to the reader. Do not sue me.

How do I SHORT REFINANCE my ARM Mortgage into an FHA Loan?

ARMs have been strained,

………………………….. ARMs have been twisted.

Since Lehman failed you may find that…

your ARM as around your own neck?.

Ugh… for current home owners with soon-to-adjust adjustable rate mortgages [ARM], the recent financial market upheaval worldwide may lead to a personal catch-22.

This is mainly because most conforming ARMs made after 2003 are based on an index called “LIBOR” [London Interbank Offered Rate… this is the rate that banks charge one another] and LIBOR is up an uncharacteristic 2 percent since September. Ooof.

Historically, LIBOR has tracked the U.S. treasury market, plus about 1/2-percent. This suggests that banks are only slightly less likely to default versus the U.S. government. That communicated that banks, at thte time were only fractionally less likely to default than the US Govt.

Well guess what?

Banks aren’t that confident in one another anymore. Oops. Now you have seen a diverging trend between the two indices. Wow, that makes me feel smart! [Breathe Chris, breathe….]

Today, that spread is around 4.500%.

The LIBOR spike is hurting homeowners with ARMs because adjusted rates on conforming mortgages are often calculated by adding a margin of between 2.250% and 2.750% to the current 12-mo. LIBOR rate.

The big group at risk? You guessed it…sub-prime mortgages, their margins are even more steeperer. [There’s my awesome grammar again! Smart felling from before… it’s gone now.]

In general, ARMs are not bad in and of themselves, so be weary of News anchors that try to pass off they know what they are talking about… they are just reading this 10 minutes before their broadcast and know likely less than you do if you have a good mortgage professional.

Your mortgage professional, the good ones at least, likely explained that ARMs are typically lower rates because you are taking some of the risk yourself. Unfortunately, current market conditions are worse than could have been imagined 3-5 years ago. If you still have 18 months or more on your ARM, you are in a better position than those with less than that, but to be sure, if you have any questions, call or email your loan officer, or a CMPS like me, to talk about how LIBOR may impact your adjusted mortgage rate and payment.

For many of us… I personally have an ARM as well, it’s less expensive to refinance into a new home loan that to just let the adjustment happen… especially if you can qualify for an FHA loan.

Orlando Short Refinances are a relatively new phenomenon and all the chips haven’t fallen yet as to how these are going to shake out… that being said, they may be an alternative to the ugly process of a short sale. [Which is anything BUT short!] It is important that you know that I am staying on the cutting edge along with a couple other high-profile loan officers from around the country. To get in on the front end of the wave, Apply for a FHA Short Refinance here.

(Image courtesy: Wall Street Journal Online)

Bad Credit? Orlando Credit Repair made accessible…

As an Orlando mortgage broker that has weathered the storm of the mortgage meltdown, I have unique insight on the need for bad credit repair in today’s “New World” of Orlando real estate financing. As the mortgage ‘box’ has gotten smaller and smaller, something simply needs to be done to keep people in a position where they can get into homes.

Lenders have increased score requirements [at least for the time being], so how do these masses of people qualify for homes in the short term?

The answer, ethical Credit Repair! As a licensed mortgage broker, I had always distanced myself from credit repair because I felt that it was

• A rip-off and a waste [or even worse, illegal]

• Going to cost the consumer $3000!

Neither of these options were acceptable to me. The rip-off was out for obvious reasons, and the cost of $3000 wouldn’t work because in most cases, if they had $3000… they wouldn’t be in the scenario they were in! Hello…

That is where FLCreditFix.com came in. After doing some digging around, I found a place that is quite reasonable in their service offering and I have seen some pretty spectacular credit repair results.

Now, no one can guarantee that any one item will be taken off your credit report… but Florida Credit Fix, through their affiliation with Fix Credit Biz, does guarantee their service so if you do not see a significant improvement in your credit… you get your money back. 100% Refund if your Bad Credit isn’t improved upon.

As a Mortgage professional, it became somewhat of a no-brainer in order to be able to help people get back into the mix and get decent terms on a mortgage again.

When you couple Credit Repair with Orlando FHA Loans, people are simply able to get back into the housing market and buy a beautiful home again.

Chris

Orlando Mortgages | Orlando FHA Loans

Orlando Real Estate | Florida Reverse Mortgages

Florida Short Refinance | Mortgage Chili Blog

Written by Chris Brown, an Orlando Loan Officer. For more information about purchase loans or refinances on primary residences or investment properties, please contact me directly @ 407-377-0500 x 210.

WAKE UP! Smart buyers are jumping in… with both feet!

“You buy when there’s blood in the streets”

–Baron Rothschild

With the simple statement, Buy-Low, Sell High… what should people be doing now? Um, isn’t it obvious? To the smart, forward thinkers it is…

Real estate buyers are jumping back into the Orlando housing market and taking advantage of Orlando mortgage rates.

Each month, The National Association of REALTORS^® [NAR] tracks homes that are under contract [to sell], but haven’t closed yet… hence a “pending sale.” It also publishes a monthly report to show the statistical data.

This report is important because it’s purpose is to predict future home sales activity. [I love simple logic.] History shows us that 80% of homes under contract will “close” within sixty days, and the vast majority of the remaining will close within 120 days.

If Pending Home Sales are up, it’s believed, actual home sales will be up, too.

Cause, meet Effect.

Effect, meet Cause.

In August, Pending Home Sales jumped 7% nationally. This returns us to levels not seen in over a year.

The report’s strength leads us to believe that buyers are returning to the housing market when added to the trend that started in March. This is reallyyyyy good news for sellers because more buyers on the hunt means more demand for homes which, in turn, leads to higher sales prices… or at least stabilized prices.

The Pending Homes report is not a faultless predictor, however.

For one, it’s not measuring an actual sale — just the expectation of one. It also does not include new construction… only existing properties.

Bottom line, the strong change in the trend in August tells us that home buyers are re-engaging at a ramped-up pace and finding that “now” is the time to buy real estate.

When buyer demand rises, the real estate market, as a whole, isn’t usually very far behind.

Written by Chris Brown, an Orlando Loan Officer. For more information about purchase loans or refinances on primary residences or investment properties, please contact me directly @ 407-377-0500 x 210.

(Image courtesy: The Wall Street Journal Online)

Should you get an Orlando Refinance? Should you tap your assets?

The sure thing that uncertainty seems to bring with it…  more uncertainty.  With uncertainty, comes inaction.  This is good and this is bad.  I guess the proper [in]action is whatever you must do to keep your powder dry. For some people that may mean… do nothing.  For many more, it may mean getting things in order.  For some people, an Orlando refinance is the right move… others may need an Orlando FHA Short Refinance… others might need to consider making “hardship withdrawals” from their 401(k) plans.  Whatever option you choose… get professional advice.  Times of turmoil are times to tighten the belt, but not when it comes to best advice as to how to keep your powder dry. [Heck maybe that should have been the title of this mortgage blog.] LOL

Once FHA Short refinances are a bit more widely accepted among the major mortgage holders it may be a better choice for some, but right now it seems people are turning to their 401(k)s.  In fact, a major fund group cites a 15% up-tick in activity in ‘hardship cases’ from people needing access to some of their 401k funds in order to, among other things, stave off late mortgage payments, bad credit, foreclosure, short sales and medical emergency.

However, 401(k) loans should only be made with careful consideration.  If you need financial advice, I know several top-tier LOCAL Orlando financial advisers that I can introduce you to in order to field questions… simple  or complex.  People like  Jim Hasley, Dan Smith and John Ledford, among others, have all proven their value in such a tumultuous time for those that have come to rely on them.  Bravo, I say!   [Or is it ‘Woo hoo’, that I say?]

On the positive side, 401(k) loans don’t require a credit check like an Orlando cash-out refinance would. This is a helpful little nuance for people deep in debt, and who may have been late on a payment or two to their creditors. With no credit score requirement, a poor payment history won’t disqualify a plan participant.  Would credit repair and a refinance be a better option?  Possibly… but get that advice from the financial planner or the person that you lean on now for financial advice.  I don’t want the fact that I do Orlando Mortgages to be perceived as bias on my advice.  Those that know me, know it would not, but this blog has gained amazing amounts of traffic, so most of you don’t know me yet. =0)  Anyway, back to the 401(k) stuff…

In addition, most 401(k) loans can be arranged with just a phone call and a small stack of paperwork. There’s no “qualification process” like applying for a credit card or jumping into the mortgage qualification process. Money can be available, therefore, in as little as a day.

But there are negatives to 401(k) loans and the biggest one relates to taxation.  Financial planners, like Jim, Dan and John can help with this, or local CPAs like Craig Zokvic or Bob Biferie can be good resources as well.

If you take a 401(k) loan and can’t repay according to its terms, the IRS taxes the loan as ordinary income [oops] and slaps on a 10 percent penalty if you’re under 59 1/2. That can be very costly for a lot of people.

But, even if you do repay the loan on time, it’s still gets expensive. This is because 401(k) loan repayments are subject to double-taxation. [Don’t ask… call a tax professional! LOL]  Well… here is a snap shot of what happens… but still… I am not a tax adviser so check-out what I am saying here:

The first taxation occurs when the loan is repaid because the payback is made with post-tax paycheck dollars. A person in the 25% tax bracket, for example, would need a $1,333 paycheck to repay a $1,000 loan — the missing $333 goes to taxes.

And the second taxation occurs at retirement when the funds are finally withdrawn. The IRS taxes that money as ordinary income. [Jerks!] <——– Okay, when I say that it sounds funny… when you read it, your can’t hear the humor!

Now, this isn’t to say that taking a loan against your 401(k) is bad, it just may not be the best possible route for a person in trouble. Especially because of the costs. If you’re planning to withdraw from your 401(k) for hardship, be sure to talk with one of the qualified financial professionals above first.

If you’d like a referral to a trusted professional, call or email me anytime.

Chris

Tags: keepyou powder dry, orlando refinance, orlando fha short refinance, jim hasley, dan smith, john ledford, craig zokvic, bob biferie, 401k loans, orlando cash out refinance, orlando credit repair, financial hardship, orlando mortgages

“No” Vote on bailout… what happened to Orlando Mortgage Rates

On Sept 29th, the U.S. House of Representatives whooped up on the the $700 billion “Bailout Bill”, surprising Wall Street and the rest of the world for that matter.

The Dow responded by falling an astonishing 777.68 points — its largest one-day loss in all U.S. history.  The media, in prime fashion, did a great job in over reporting that… but guess what they missed? [Gee, have they over-reported anything else…say…over the last 3 years!! LOL… sorry pet-peeve of mind and how they scare consumers, but I digress.]

What they missed, however, is how the “No” vote created a terrific opportunity for Orlando mortgage rate shoppers.

Throughout the day Monday,money fled the tanking stock market and most of it ended up getting parked in the relative safety of government-backed bonds which includes, of course, the mortgage bonds. This phenom is called, “Flight to Quality”. This rising demand for mortgage bonds caused rates to fall.

To investors, both institutional and on street level, the stock market represented extreme risk and bond markets represented comparative safety… Translation: Rates get better.  Media seemed to miss that…. huh.  So, when market sentiment changes, as it did on Monday, Wall Street players often shift their dollars from one place to the other. This is why Monday’s stock sell-off was good news for Orlando mortgage rate shoppers — the added demand for “safe” securities drove down rates.

Mortgage rates were about about an eighth-percent less Monday.

Now, Tuesday, mortgage rates are opened flat, Then it got u.g.l.y.. Mortgage Backed Securities fell [fell is bad for rates, btw] back to where they were in the beginning of September… erasing the benefits gained.  In today’s volatile market, you need to be able to move quick… or that rate you saw…WILL be gone.

If the new-look bill is viewed as favorable to U.S. businesses without harming taxpayers, expect stock markets to improve and mortgage rates to rise. If the bill fails to accomplish that goal, however, expect mortgage rates to improve.

Quick sidebar… re-looks at this kinda stuff make me nervous.  When has a Bill that didn;t get enough votes, get smaller, in order to get more people on-board?  Never… they add more pork to it to convince other to vote.  Ughhhh.

Other Articles of Interest:

$7500 Tax Credit

Is DPA… DOA?

Lowering your rate EVERYTIME rates go down…