Mar 18 2008
Feds Cut Interest rates by 3/4 percent today
Seattle condo buyers don’t get too excited yet, because even though the fed cut the rates it does not mean the mortgage rates will go down the same amount to buy that Seattle condo.  Investors don’t want to get locked into long term investments with low interest rates if we have high inflation. Despite a reduction of 2.25 points since September in interest rates we have seen little fluctuation in long term mortgage rates. But the Fed increasing loan limits do help the Seattle Condo buyer because these are more liquid investments for the lenders and thus making these higher limit loans more appealing.
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Good post- we are working our way through a problem that we haven’t fully seen before; loan programs are changing daily based on best guesses and worst case scenarios. I don’t think the Pac NW is immune to the countries real estate problems (I’m in Portland) but I think we are headed for a softer landing due to livability, cost of living, jobs, and urban growth limits. The wild card is the loan; if we lose too many more options it is really going to hurt.
Good luck
Hello Micheal, I have to agree 100% with Kyle on this one. The bank rates are fluctuating daily and it is not a good thing at all.