The March 2012 Federal Reserve meeting showed signs of economic expansion that may lead to higher mortgage rates across the nation, but especially in the Bay Area. AccessBanc Mortgage suggests locking in a rate now, before they rise.
San Jose, CA (PRWEB) April 03, 2012
After the Federal Reserve’s March 2012 Federal Open Market Committee (FOMC) meeting, the future of the nation’s currently low interest rates could be at risk, says Bay Area mortgage broker AccessBanc Mortgage. And now is the time to lock in a good mortgage rate, since there is nowhere for them to go but up.
“There is a lot of room for mortgage rates to rise, but there is not much room for them to fall,” explains Greg Erny, Principle of AccessBanc Mortgage. “The safe play is to get a rate locked now.”
The Fed has said repeatedly that it intends to keep the Fed Funds Rate near 0.000% for an “extended period of time”-through 2014 at least. Unfortunately, this doesn’t mean that conforming mortgage rates and FHA mortgage rates will remain low as well.
Mortgage and FHA rates rise long before Fed Funds Rates in a recovering economy, because they are ultimately an indication of long-term Wall Street attitudes. This is different from Fed Funds Rates, which are usually the outcome of a short-term fix the Fed applies to try to regulate the economy.
“For those individuals who truly want to get a good rate on their mortgage, this is an important time to take advantage of low rates because the only way for rates to go at this point is up,” notes Erny.
The first step for those individuals, says AccessBanc Mortgage, is to make a plan and get a mortgage rate quote. Mortgage rates have remained consistent at historically low levels since 2011, and have only broken 4% within the past few weeks. Following the FOMC meeting, conforming mortgage rates throughout California rose by as much as 0.375%, says Daily Mortgage Advisor, and there is a big chance they will only continue to climb.
According to AccessBanc Mortgage, these rates are a response to the Federal Reserve comments that ignited a mortgage bond selloff by Wall Street, which controls the mortgage rates.
“Locking in mortgage rates now is going to be important because the mortgage rate arena could look drastically different in short order,” says Erny. “Mortgage rates get unpredictable after every FOMC meeting.”
And after the second meeting of the FOMC this year, it’s clear that the economic recovery the nation is seeing is good for stocks and bad for mortgage rates, but the experienced brokers at AccessBanc Mortgage are ready to help lock in loans for interested homebuyers.
For more information about mortgage rate trends, or for information about any of AccessBanc’s products or services, call them at (855) 262-6302 or visit www.accessbanc.com.
About AccessBanc
AccessBanc is a San Francisco Bay Area mortgage broker committed to offering the most seasoned, professional, and competent loan consulting talent available. Because AccessBanc Loan Consultants enjoy favorable lender terms, use state of the art technology, and apply innovative solutions to knowledgeably work the market, they can offer prospective borrowers extremely competitive mortgage rates and great service.
AccessBanc’s services include: refinance, home purchase, first-time homebuyers, conventional conforming loans, jumbo loans, second/vacation homes, investment/rental properties, pre-qualification and pre-approved letters, and home equity loans / lines of credit. From home finance in Marin to first-time homebuyers in San Jose, AccessBanc’s carefully selected Loan Consultant Team can help Bay Area borrowers find the right loan.
AccessBanc Mortgage is a Real Estate Broker licensed by the California Department of Real Estate, License #00892684. NMLS #311147.
For the original version on PRWeb visit: www.prweb.com/releases/prweb2012/4/prweb9361557.htm
Article source: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2012/04/03/prweb9361557.DTL