Weekly Recap (08/08/11-08/13/11)by Tim Manni
The mortgage interest deduction is back in the news.
The super committee
Following the downgrade of the U.S. debt, a new bi-partisan “super-committee,” set up under the deficit deal, is supposed to look at ways to get government finances in the black–without raising taxes.
In my eyes, it’s difficult to see how they will be able to resist tinkering with the mortgage interest deduction, assuming they do anything at all.
To help everyone gain a better understanding of how and when to lock in a mortgage rate, I asked mortgage broker Kevin Ungar, of Apple Mortgage Corp in New York, to explain the intricacies of a mortgage rate lock.
Here is Kevin’s article (specially written for blog.HSH.com):
“The 5 golden rules to understanding your interest rate lock“
The process of buying a home can be an arduous one. The buyer’s mind gets cluttered with so many things–contracts, W-2s, pay stubs, title insurance, closing costs, movers, etc.
Today, I want to talk about what many consider the most important part of the homebuying process: the interest rate.
If you’re a mortgage or real estate professional who enjoys writing, blog.HSH.com would like to hear from you.
In an effort to help consumers better understand the mortgage and homebuying process, we wanted to give them a glimpse into the professional side of things.
Who better to educate and inform consumers than the very individuals who will be walking them through the process?
Mortgage fall to record lows
Last week, the overall average rate for 30-year fixed-rate mortgages (conforming, expanded conforming and jumbo mortgages) hit a 2011 low, dropping to 4.65 percent.
As of the close of business last Friday, the 30-year conforming fixed-rate mortgage rang in at 4.41 percent, also a record low in 2011.
It’s a done deal.
Standard & Poors has reduced the credit standing of the United States from AAA to AA+. Not just a state or company, not a toll road or utility, but the entire country.
This is serious business
The downgrade now the lead story for every newspaper and business blog you can find (as it should be).
During the last week of July, fears that a vote to increase the nation’s debt ceiling wouldn’t come in time and that the U.S. could possibly face a credit downgrade kept mortgage rates at bay.
While a new national debt limit was signed into law last week, the United States officially had its AAA credit downgraded late in the day on Friday. As a result, Fannie and Freddie–who are 100 percent controlled by Washington–have been downgraded as well.
What does a downgrade mean for mortgage rates?