2009 Real Estate Market Shows Promise as Refinance Request Spike...

Just a few short weeks ago, the Treasury Department was rumored to be playing with the idea of creating a 4.5% mortgage-backed security that would be used to buy down the interest rate for consumers looking to purchase or refinance a home.

A little over a week ago, 4.5% interest rate is a reality-but not because of the Treasury. Thanks to the Federal reserve recent 75 basis point rate reduction, some lender are offering a 30 year fixed rate home loan, as long as the homebuyer is willing to pay two percentage points for the loan.

4.5% rates can go a long way when it comes to sparking mortgage originations nation wide. Which is exactly what lender, builders, and home sellers are hoping for. The original Treasury plan was to only offer this rate reduction to homebuyers which sparked a great deal of understandable protest from lenders who wanted this option for refinance loans as well. So it appears for now, the lenders have won, and as the year begins to kick-off, residential lenders that have been fortunate enough to survive the carnage of the past 18 months, are starting to feel a noticeable spike in loan applications for both refinance and purchase money loans.

I will keep a positive and open mind the 09 is the beginning of the turn in the market for not only the consumer, but also toughs of us that have weathered one of the worst financial storms in recent history.

Until Next Time...

Remember To Live Life Powerfuly!

Colin F. Watson

http://www.Loans4heroes.com

Office: 888-242-5282

Direct: 310-593757

cfwatson@loans4heroes.com