Check out this great post from our friends at Cobalt Mortgage about the input on the Fannie Mae and Freddie Mac’s impact on our rates?

On August 8th 2011, S&P downgraded Fannie Mae and Freddie Mac from a AAA rating to a AA+ rating. When a security’s rating drops, it often indicates that the investment is less desirable resulting in higher rates. That is not the case this time around.

The US Government has been supporting Fannie Mae and Freddie Mac since 2008. The downgraded rating is result in a downgrade in all US backed debt. Although the rating is lower, investors know this is a sign of slow economic growth in the US, not an isolated hit on Fannie Mae and Freddie Mac. Since then, investors have flooded their money out of the stock market into safer investments with surging prices  in commodities, such as gold, as well as long term bonds including Fannie Mae and Freddie Mac backed securities. The result, lower mortgage rates.

It may seem odd that investors are buying a security immediately after its rating was lowered, but that’s exactly what’s happening. Mortgage securities backed by Fannie Mae and Freddie Mac are reaching their highest prices of the year leading to a drop in mortgage rates.

As of yesterday 8/10/2011 at 10:07am rates went as low as…

30yr Fixed 4%

15yr Fixed 3.99%

Whether you’re a First Time Buyer, a Seller or want to Re-Finance at these LOW RATES

Contact Us Today 206-334-8773

Check out Thach’s Video on the breaking news click here