Cincinnati Mortgage Market Update

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Mortgage Market Update:

The Federal Reserve continued to drop interest rates in March when they lowered the Fed Funds rate by 75 basis points to 2.25 percent. This will bring the prime rate down to 5.25 percent, affecting short term credit costs.

Fixed-rate mortgages remain stable and hover in the high 5 to low 6 percent range.
The housing market got a boost in February as the the National Association of Realtors (NAR) reported increased market activity in the Existing Housing Market, up 2.9 percent for the month. As it stands, the NAR is anticipating an annual sales volume of 5.03 million homes for 2008.

Finance Q and A:

Q: How will the recent Economic Stimulus Package affect our current mortgage market?

A: The US Department of Housing and Urban Development (HUD) recently announced an increase in FHA loan limits, which were mandated by the Economic Stimulus Act. The new limits are based on median home prices throughout the United States. These new changes create a lot of opportunity for home owners and home buyers, and promote access to lower cost loans. To find out what the limits are in your county, contact your mortgage professional today.

Tip of the Month:

If you are in the market for a home and need a competitive mortgage rate, consider the benefits of locking in your rate early. Many experts are expressing inflationary concerns, which could adversely affect future rates. Contact your mortgage professional to discuss your best course of action. A little home work today can save you headache and heartache down the road.