I was sent this Crain's Chicago Business story by our Rubloff executives this morning: Fannie-Freddie takeover sparks global stock rally
"The Bush administration announced Sunday it was seizing troubled mortgage giants Fannie Mae and Freddie Mac in a bid to help reverse a prolonged housing and credit crisis."
But here's the number you need to watch...and act on:
"Mark Zandi, chief economist at Moody's Economy.com predicted that 30-year mortgage rates, currently averaging 6.35 percent nationwide, could dip to close to 5.5 percent. That's because investors will be more willing to buy the debt issued by Fannie and Freddie — and at lower rates — since the federal government is now explicitly standing behind that debt."
With stable, and raising median prices, in many Chicago neighborhoods like Ravenswood, Lincoln Square, Lincoln Park, Lake View and North Center you have to buy in these moments where seller's get nervous about the market and interest rates drop.
As a Realtor, I'm always on the watch to take advantage of good prices and good interest rates to get my "move-up" house or to refinance.
If you are looking for your "move-up" house in Chicago, or may want to refinance your current loan please call me. Sometimes, you can time the market... historically fall and winter will average attractive asking prices and we could see a dip in mortgage interest rates. But you have to be educated, know what you want to buy and be ready to lock your rate.
I may looking to re-finance if the 5.5% becomes a reality and will have my mortgage guy at the ready to call me the second it does.