Fed Leaves rates same…The window to home ownership is still open!

By Michael Allen

June 26, 2008

Well, as most people had predicted, the FED left rates the same in its meeting concluded yesterday afternoon. Market mortgage rates have stayed relatively unchanged as a result so the window to own a home of your own or buy another one is still open. The next FED meeting is in 6 weeks so it is likely the mortgage market will be fairly stable until at least then.

However, oil topped $140 a barrell today and the Dow Jones Average sank over 350 points. Investors are leaving stocks and buying bonds which caused the bond rates to take a dip today. Bond rates are what drive mortgage rates so there will be at least some reduction in mortgage rates tomorrow morning. How long this lasts, no one knows. It does show however that the low rates are likely to be with us for a few more months at least.

Note this! Something to be aware of right now is that mortgage companies are hurting just like car dealers. So the deals they are offering will be as good as they can in order to attract business. Same thing for home sellers in almost every market nationwide. ALL markets are off the highs of the past 2 years, some by a lot, some not quite as much. But the declines in all markets have made this a very clear “buyer’s market” so if you have decent credit, it is a very good time to be buying a home.

For more information on how to buy a house, check out our other posts and articles and also our NEW Easy Homebuyer’s Toolkit! It will provide you all the information you need to make your dreams of home ownership come true!