This may be an ideal time to refinance your home. Last month the Federal Reserve announced plans to buy $300 BILLION in Treasuries and another $750 BILLION in mortgage-backed securities. They also left the benchmark interest rate unchanged at between 0% and 0.25%.

How do these changes impact mortgage rates? Well, the huge purchase of treasuries naturally resulted in a surge of demand which increased the price of the ten-year treasuries and inversely lowered their interest rates. And, being that mortgage rates closely parallel the rates on the 10 year treasury, this has resulted in some of the lowest mortgage rates in decades. (I just locked in a 15 year fixed at 4.5%) This big purchase of treasuries was done ON PURPOSE by our fellow government to purposely lower mortgage rates and encourage people to refinance. They figure this will help Americans get in better financial shape and avoid foreclosures. By the way, the government plans another huge buying spree of treasuries in August, which in theory should keep mortgage rates relatively low from now through late summer.

If you have ever considered refinancing, NOW might be a good time to see what your options are. For more insight please give us a call, we would love to help you save money. I know some folks at Bank of Castile - and they are offering some of the best rates in town. I would be glad to give you connect you with the appropriate people so you can obtain answers and a proposal.

Although this major recession has been undoubtedly tough, remember, every challenge always presents unexpected opportunities.

Personal Update

Kathy, Christopher and Emily are all doing well. The Colgan family is very fortunate and I am grateful for every day. Late April we are headed to Sanibel FL for a family vacation. I hope to bring back the warm weather!