Well, yesterday I sat in the dentist's chair, watching CNN while the Dow and NASDAQ moved up like crazy because of the Fed's moves to try to shore up the economy. Today, I'm at the computer watching those indicators move back down again. Since I'm not a day trader, I'll just hope that the people at Vanguard who manage my investments know what they're doing.
The banks and the investment company that benefited from Bernanke's decisions don't seem to feel secure enough to roll those benefits into the hands of potential mortgage holders, though.
Although rates on 30-year mortgages dipped slightly last week, it is more important than ever for potential home buyers to have a good credit score. Consumers should obtain a credit report and take care of any outstanding issues that can be fixed or improved prior to applying for a loan. According to a recent Federal Reserve survey, some 53 percent of lenders tightened requirements for prime-quality borrowers, 72 percent for sub-prime borrowers, and 85 percent for non-traditional mortgage borrowers, including ARMs, loans with interest-only payment structures, and other such products.
Beginning this week and continuing through September, the Federal Housing Administration (FHA) is mailing 850,000 letters to at-risk borrowers who have already faced or are experiencing the first reset of their adjustable rate mortgages, and live within geographic locations that are currently subject to FHA loan limits nationwide. If this has the intended effect of keeping those at risk out of foreclosure, maybe it will help shore up the housing market and the state’s economy. We can only hope...
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