Valley Wide Homes

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Happy Easter to you and yours!

My phone has been blowing up the past day. I have been receiving numerous texts messages and calls and I hope this helps you to understand a complicated market. Please take a few moments to read below We understand that these are difficult times. There is a lot of information that may be confusing. Here are some answers to some frequently asked questions: Question 1: I saw on the news that the Federal Reserve’s Fed Funds Rate is near zero. Doesn’t this mean that the rate on ...my mortgage loan should be near zero too? Answer: The Fed Funds Rate is not a consumer lending rate. The Fed Funds Rate is the rate that the Federal Reserve Bank (the government) charges banks when banks borrow money overnight to meet their short-term obligations. Businesses may have trouble borrowing money over the coming weeks, the Federal reserve’s move to lower Fed Funds will give banks confidence to lend money knowing they can borrow from the Federal Reserve at low rates. Question 2: I hear US Treasury Bonds are at Record low yields, shouldn’t my mortgage rate be lower? Answer: Mortgage rates are determined by the price of Mortgage Backed Securities (MBS). MBSs have their own market where prices are determined by supply and demand. Over the past week, the supply of MBSs have overwhelmed demand, causing the value of MBS’s to drop. When the value of MBS drops, mortgage interest rates move higher. Question 3: Is the Government doing anything to bring rates back down? Answer: The Federal Reserve Bank has pledged to buy US Mortgage Backed Securities (MBS) to stabilize the MBS market. While rates may fall back to early March lows, it is unclear whether supply will overwhelm demand again as it did last week. Question 4: What can I expect in the coming weeks? Answer: The Covid 19 Corona Virus has introduced new risks to the entire economy which makes all of the markets unpredictable. Please be patient with us as the MBS market tries to find a level of balance so that lenders like us can provide a stable rate to consumers. Question 5: How can I take advantage of lower mortgage rates? Answer: Have your loan submitted and approved and be ready to lock your interest rate in when rates drop! The numbers won’t lie when the time is right for you to refinance! Have more questions? I’m here to help please call me anytime.

The Real Estate market is HOT, HOT, HOT!! Now is a great time to Buy or Sell! Put the experience of our TEAM to work for you!

OPEN HOUSE this Saturday from 1:00 - 4:00PM.

OPEN HOUSE Saturday 2-15-20 from 1:00 - 4:00pm. Come on out and see this amazing Wilson Home!!