Seattle & Bellevue Real Estate Mortgage Rate Watch for 9/15/10

Two KEY Points today; there is speculation that the Federal Reserve may release another $1 Trillion plan in their November meeting this year.  This could be used for bonds and also for the future release in 2011 of Fannie Mae and Freddie Mac being returned to the Private sector.  This news coming from speculations released by Goldman Sachs.  Second, currently there is a “Temporary Loan Limit Increase” which for most lenders is called an “Agency Jumbo Loan” this represents for King County loan amounts above $417,000 which is currently the conforming loan limit.  The “Agency Jumbo Loan” limit is at $567,500.  This limit is set to expire at the end of this year.  This is very important to keep in mind for all current and future home owners, if the limit does expire then all Jumbo loans above $417,000 would be priced higher in interest rates than they are today.  With some lenders it can be as much as 1% higher than the conforming loan amount.  This leads us back to timing.  If the savings are right, at these low rates, it is worth the time and investment to secure your rate and take advantage of the savings. 

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