Data Shows Americans Putting Money Into Savings?the Impact on Today’s Mortgage Rates

June 26, 2009

Daily Mortgage Updates

A&N Mortgage Logo26 June 2009 – Mortgage-backed bonds opened down 1 this morning and remain flat. The savings rate soared to 6.9%, which caught many by surprise; this is the highest level since 1993 and stocks are reacting negatively to this news that consumers are keeping their money in savings. This may impact the pace that the economy recovers as consumer spending is a key factor for recovery. Are we now following our parents and grandparents in building up our savings and paying off our homes? The Dow is currently down 56. The market should remain quiet being a Friday with no other news coming out.

The New York Fed purchased $20.29 billion of the bonds, mainly of 4.5 to 5%, bringing the total of $570 billion. Again, the government will continue to buy mortgage-backed bonds to keep interest rates at historic lows. If you have not taken advantage of these rates, consult your mortgage professional to weigh your options.

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About Chris DePaepe

Chris is a lifelong Chicagoan who was born and raised on the Northwest side. She has a business degree from Rosary College in River Forest and a MBA in finance from DePaul University. She has been in the mortgage industry since July of 1996 and understands the importance of educating clients about the process of purchasing or refinancing a home. Chris?s education and customer service separates her from her competition, from taking an application at 11 p.m. to doing a closing in the convenience of your home, customer service is her #1 priority! With her extensive financial education she is able to pass along critical information to potential clients about mortgage interest and the differences between a 30, 25, 20 and 15 year loan. Chris will run every amortization chart and spend a great deal of time explaining the savings on your mortgage interest by showing actual examples. Also, most first time buyers do not understand the tax advantage of owning a home and she will break that down and show the actual tax advantage of owning a home versus renting. Chris prides herself on taking the time to fully educate every buyer so they are aware of the process from the beginning to the end without any surprises. Whether you are looking to refinance or purchase a home, understanding today?s market is extremely important to getting your loan approved. You can contact Chris 24/7 at chrisd@aandnmortgage.com, 773-305-7016, or 773-848-4144.

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