News
US housing market rises as interest rates fall
Monday 19 May 2008
The US property market has received a boost as it was announced on Saturday (May 17th) that interest rates for higher priced properties have started to fall.
Homebuyers have been waiting since February to see the results of an economic stimulus bill passed by Congress to deliver lower rates on mortgages in high-cost areas of the country.
Dennis Steinbach, of S&L Home Loans in San Jose, said: "I've got approximately 50 loans sitting in a bucket here waiting for this to happen. My phone's been ringing off the hook this morning."
The fall in interest rates will make a significant difference to mortgage repayments at the top end of the market. A one per cent fall in the rate of a loan would equal a saving of $300 a month on a $500,000 mortgage.
Other methods are now being employed by agencies to turnaround the stalled housing market. Fannie Mae, a government-sponsored agency, agreed on Friday (May 16th) that it would secure mortgages for those with a minimal deposit.
The agency announced it would back loans for those that could only provide a three per cent deposit, even in areas where prices were declining.
Homebuyers have been waiting since February to see the results of an economic stimulus bill passed by Congress to deliver lower rates on mortgages in high-cost areas of the country.
Dennis Steinbach, of S&L Home Loans in San Jose, said: "I've got approximately 50 loans sitting in a bucket here waiting for this to happen. My phone's been ringing off the hook this morning."
The fall in interest rates will make a significant difference to mortgage repayments at the top end of the market. A one per cent fall in the rate of a loan would equal a saving of $300 a month on a $500,000 mortgage.
Other methods are now being employed by agencies to turnaround the stalled housing market. Fannie Mae, a government-sponsored agency, agreed on Friday (May 16th) that it would secure mortgages for those with a minimal deposit.
The agency announced it would back loans for those that could only provide a three per cent deposit, even in areas where prices were declining.
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