Texas Mortgage Rate Update 7/28/2008

Texas mortgage rates have moved slightly lower today. Dallas, Houston, Austin, San Antonio, and College Station interest rates still near all time historical lows.

The Senate has approved a comprehensive housing bill that among other things provides a financial backstop for Fannie Mae and Freddie Mac should it be needed. The legislation has moved on to the President for his signature, which is expected no later than Wednesday. Contrary to what some would have you believe, this new housing package is a good thing for borrowers and lenders alike. The centerpiece of the legislation is a $400 billion three-year FHA program that will enable certain subprime borrowers to refinance into government guaranteed fixed-rate mortgages.

The Texas mortgage market is the temporary beneficiary of some “flight-to-quality” buying created by an early swoon in the stock market. While the flow of capital from the stock market, into the mortgage market is welcome, it won’t necessarily stick around for long.

It’s going to be an active week with a deluge of economic data raining down on mortgage investors, culminating with Friday’s much anticipated July non-farm payroll report. As if the heavy economic calendar wasn’t enough, the Treasury Department will likely be announcing a strong increase in their borrowing appetite on Wednesday with price action in the stock and oil markets adding the “wild card” effect for the balance of the week.

As always, If you have ever have a question on whether it is the best time for you to refinance your Dallas mortgage loans or what interest rate you can get when buying your next Texas home, feel free to give us a call or shoot us an email by filling in your information on the right hand side of this page.