According to the New York Times, The Federal Reserve and the Treasury announced $800 billion in new lending programs by printing to more money to bolster the mortgage market.
The mortgage markets responded quickly to the Fed's announcement that it will buy up to $600 billion in debt related to mortgages guaranteed by Fannie Mae and Freddie Mac. Interest rates on 30-year, fixed-rate mortgages fell to 5.5% from around 6.3%.
Here is today's rate based on $300,000 Purchase using a $240,000 (80%) loan:
Rates obtained from www.aimloan.com
This is an excellent time for the homebuyers on the fence to buy a San Diego foreclosed home.
San Diego bank-owned homes are priced to sell. Using the above example, buying a $300,000 home at today's 5.5% interest rate, your mortgage payment would be $1362.69.
The rental value of a $300,000 home can be $1800 plus in San Diego.
The current list of San Diego Bank Owned homes is available at HouseRebate.com.
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