Well, wouldn't you know? When everything else touched by a hurricane turns to a witch's brew, interest rates take a dive. We're talking mortgage rates, of course. Angela Page of Premier Mortgage Group was kind enough to send us this little article: Hurricane Katrina devastated the Gulf Coast and sent interst rates lower on the week. As the rescue efforts continue, the bond markets are still trying to assess the hurricane's economic impact. With many oil rigs missing or sunk and refineries off line, oil prices have risen to nearly $70 per barrel and gasoline has risen to approximately $3 per gallon. Gas prices will remain high until the region's supplies can be restored, which may take weeks or months. During August, 169,000 non-farm payroll jobs were added. Bloomberg reported today that some economists expect the economy to lose 500,000 jobs in September, the biggest one-month decline in 30 years. More than one million people have been displaced by the hurricane and likely won't return to work anytime soon. Prior to the hurricane, it was widely expected that the Fed would raise short term interest rates by 25 basis points at its September 20th meeting. Will it pause, though, in the wake of Katrina's destruction? So, for those of you shopping for second homes in Summit County, it's good news. 30-year fixed rates are currently at 5.375% non-jumbo and 5.75% jumbo. ARMS and other loans are down, as well, but the difference between them and a 30-year fixed-rate loan is so little that you ought to simply give yourself the security of a longer guarantee. Then, you can look out from your Breckenridge or Keystone living room at the ski slopes, be warmed by the fire, sip a hot toddy, and luxuriate. Or use the savings on your monthly payments to fill your tank. If you have an interest in purchasing property in Summit County, please visit our website. All the property listings are there. When you live or visit here, you will know "Snow Place Like Home". |
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