Marc's Mortgage Matter's

If you have a mortgage, consider yourself lucky. That is the upshot of the most recent survey of mortgage lenders by the Federal Reserve Board, which found that banks' lending standards were significantly tighter in April than they had been in January, when credit was already tight.

People are regardless still buying homes. Not in droves but savvy borrowers who have decent credit, some savings for a down payment and strong income are qualifying albeit with more TLC and hand holding.

“Why are rates going up?”, you can say, “Oil prices are at a record high, and economists believe that the Federal Reserve will have to raise overnight interest rates to keep inflation low.” The Fed, however, does not set mortgage rates, and there are many that believe the economy will slow further, due to high food and energy prices, and prompt the Fed to resume cutting rates. The Fed has cut interest rates as far as they can and mortgage rates are not expected to fall much further than its current level in the low to mid 6%, although Treasury rates may creep down. Unfortunately high energy prices, the weak economy, and tighter credit guidelines are causing consumers to cut spending and avoid buying new homes and big ticket items.

Stay safe, stay well and think positive. Memorial Day greetings to all!