10.11.2001 :: Loans
One Month Later
by Janee Del Colletti

Today marks the one-month anniversary of America's worst tragedy in history. The destruction of the World Trade Center and the Pentagon has affected our country physically, emotionally, and economically. Our office has been flooded with calls. Clients are asking what is happening with interest rates? Is it a good time to refinance? Is it a good time to purchase a new home?

According to the Meyers Group, it is now clear we were already headed toward a recession in the third quarter. Consumer reports indicate that consumer confidence experienced the greatest decline since 1990. Most of these reports were completed prior to the attacks making it apparent our economy was already slowing.

Since the attacks, the Federal Reserve Board has dropped the short-term rates by another half of a percent. The Prime Rate is now at a very low 5.5%! Long term mortgage rates dropped to record lows as well. Thirty year fixed rate loans could be obtained at under 6.5%

As consumer confidence rises, so shall the interest rates. Now is a great time to take advantage of these all-time low interest rates whether you are looking into combining an existing first and second, taking cash-out for home improvements, consolidating debt, or simply obtaining a line of credit. It is also a great time to purchase a new home! We highly recommend for you to speak with your mortgage consultant and/or real estate professional to discuss your options.

Janee Del Colletti of Santa Cruz Mortgage can be reached at 831.454.1169 or by email at janee@santacruzmortgage.com.