Home Loan Market Update

This just in today from Kathy Harrison at Bell Mortgage (FinancingHelp.com) in her weekly "Market Watch" newsletter:

"Interesting Notes - To date - Over 120 mortgage companies have closed their doors due to reduced liquidity. The result - borrowers who want to take out non-conforming loans have fewer, more expensive options. Many media outlets have incorrectly added fuel to the fire by stating mortgage lending has stopped altogether and borrowers can't get a loan without 20% down payment. - not true. Conforming rates actually may see the loan limits raise in the near future. Fannie Mae and Freddie Mac are talking about that right now so that may help our market. In addition rates for conforming loans have actually improved. The Fed is looking likely to cut the Fed Funds rate which would affect prime and could have an impact on home loan rates in the September Meeting. All good news."

Kathy has over 25 years in this industry and is well worth listening to. I'll keep you posted with other insights from time to time.