One of the difficulties right now is getting a home mortgage loan, or refinancing through a second mortgage. But, if you can swing it, now might be a good time to think about a mortgage loan. Why? Because mortgage interest rates are down. Reuters reports the interest rate drop:
Borrowing costs on 30-year fixed-rate mortgages, excluding
fees, averaged 6.25 percent, down 0.17 percentage point from
the previous week, their lowest since the week ended May 18
when they stood at 6.23 percent.
And, despite the fact that Fed Chair Ben Bernanke is holding his views as to a rate cut close to the vest, many expect that on Tuesday the rate cut will come. And some think that it may be as many as 50 basis points, bringing the rate to 4.75%.
This interest rate cut could have an effect in many areas. Yesterday, speculation of the rate cut buoyed stocks, and they made up quite a bit of ground. Today, stocks are relatively flat, but holding steady. However, the rate cut would be less helpful to cash investments. A cut in the rate means that cash would not return as much, and you might also find that the U.S. dollar would drop a bit, if you are into forex trading.
But if you are looking for a mortgage loan, it could be a good time for it. As long as you can pass muster with the tighter lending standards.