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Huge Fed Rate Drop-What the FED just Happened?

January 23, 2008

This came out today from one of my great partners in Clear Title of Madison, LLC.

“The Fed (the Federal Reserve) surprised everyone today with an unprecedented, mid-meeting, three-quarter (3/4) point rate drop. As always, this does not necessarily translate into lower mortgage rates. If the markets and lenders believe this signals panic or will cause inflation, mortgage rates could actually rise. But consumer perception matters a lot.

Before this rate cut, mortgage rates were unbelievably low (5.6% on a 30 year mortgage). Many consumers have high enough rates on their current mortgages that refinancing now makes a lot of sense. Lenders and Mortgage broker’s aren’t the only ones who should be calling these consumers to get them off the fence. You can contact them and show your expertise while having an excellent reason for a “touch.”

According to Bankrate.com, rates peaked over the summer of 2007 at about 6.7%. Why not call any of your clients who purchased a house between May and September of 2007 and let them know that it may be a very good time to refinance since rates are a full point lower than their summer peak. And, of course, while your at it, make sure to let them know that you have excellent partners who can help them with their loan and closing.”

Peter Zarov
Clear Title Madison, LLC
3 Point Place, Suite 105
Madison, WI 53719
Direct: (608)203-4805
Fax: (608)203-4802

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