Michigan mortgage rates are once again on the rise. The reason being is that investors are shying away from buying mortgages and mortgage back securities. Investors are wary of putting money into mortgages.
What that means to mortgage companies and consumers is that rates may continue to rise even though the Fed continues to cut the rates. You can see my article on the difference between the Fed rate and the mortgage interest rate at www.activerain/blogs/russravary It explains a lot why it happens.
The bottom line is that mortgage rates do not always go down when the Fed cuts the rate. Especially right now when big investors are afraid of buying mortgages. No pension fund manager want to take a chance on putting somebodies retirement at risk because of the mortgage fiasco. Not many foreign investors want to take the chance at this time either. What that means is that mortgages are getting harder for the banks and lenders to sell. Rates may continue to rise this year.
For more on Michigan mortgages, Michigan real estate go to my website www.RussRavary.com Search over 70,000 Michigan Homes for sale at your leisure. Email me for a Michigan foreclosure list in your city at info@RussRavary.com
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