Rates DROPPED .5% on most loan program yesterday

According to AFX News Limited "The Federal Reserve on Tuesday slashed a key interest rate by three-fourths of a percentage point, moving aggressively to contain a credit crisis threatening to push the country into a severe recession.

The latest action brought the federal funds rate -- the interest that banks charge each other -- down to 2.25 percent, the lowest point since late 2004. It marked the second back-to-back cuts of three-fourths of a percentage point."

So what does this mean to me?

The Federal Reserve recognizes that the national housing market market is suffering. By lowering rates, the FED hopes to increase demand by enticing more buyers to buy. Although Portland isn't struggling like many other cities, this rate drop will have a positive effect on our market. As of yesterday, March 17th, interest rates have dropped .5% for most loan programs. Please contact me with any questions or for further information via my website at http://www.NathanWyllie.com or by phone at 503-502-5072

New FHA Loan Limits!

As of yesterday, the Federal Housing Administration (FHA) increased the loan limits for Oregon. The Portland Metro Area FHA loan limit is now $418,750 for a single family home.

What does this mean? An FHA loan is a great option for someone who is looking at purchasing a home and wants to make a low down payment. FHA loans also tend to be more lenient with credit than other loan programs. The Department of Housing and Urban Development (HUD) is allowing the FHA to temporarily raise loan limits as part of the economic stimulus package. The lack of ability to qualify for FHA loans caused some people to go through various "exotic" sub prime lenders. FHA Brian Montgomery suggests, "Many families all over the U.S. will benefit from this access to credit, and increasing these loan limits will inject much-needed liquidity into the housing market."

If you live in a county other than Multnomah, or are curious to see how other counties loan limits were affected, check out https://entp.hud.gov/idapp/html/hicostlook.cfm. As always don't hesitate to contact me with questions or comments via my website at http://www.NathanWyllie.com

Why do I have a blog (first post)

Hi All. I have decided to create a blog in order to keep my clients in the loop with information regarding Portland Metro's Real Estate market. For those of you who aren't familiar with blogs, a blog is a web journal of sorts. It is a place for someone to post a "web-log" of things that are important to them or their business. When something happens in the Real Estate world, you will find an explanation of how it will affect the Portland market here (on my blog). Some of the things I will definitely be "blogging" about:
- Mortgage Rates: drops and hikes
- Local neighborhood appreciation values
- Significant Real Estate legislation that will affect the Portland area
- Local foreclosure statistics and explanations
Basically, if something occurs that will have a significant impact on our local market you can read about it here. As always, don't hesitate to contact me with questions you may have. Stay dry Portland