FED QE2

I hope your November is off to a great start. The big news this week is the elections and the FED QE2 (Quantitative Easing) hitting the markets. We have seen interest rates once again rally and push mortgage rates into all time lows. No matter who you voted for, the fact that elections are over is a good thing. The markets hate uncertainty and now that the next wave of political leaders have been established and their agenda have been announced; business and consumers can get back to business. A Republican led Congress is considered “less regulatory and more business-friendly.” Hopefully this will also give banks the needed confidence to start lending again to small businesses. In regards to the QE2, the Fed is taking an aggressive stance on job creation. The FED has agreed to purchase $600 billion in Treasuries. This will hopefully drive down interest rates and that will prompt consumer and business spending. The spending will create more jobs and the jobs will create more spending and the we have a cycle of true economic recovery.
On the mortgage front, we had a major change on the required minimum FHA score going from 620 to 640. However, most borrowers who will fall around 620 should be able to obtain the needed 640 with a little bit of guidance, time and money. I am happy to help any of your clients rebuild their credit. We are still closing most loans in less than three weeks. So if any of your clients need a loan please have them give me a call.