Never mind the Federal Reserve rate raise. Mortgage interest rates are WAY down today.

Interest rates for conforming loans (under $425k) just hit freakishly low rates.  You can get a 30-year fixed rate for about 3.875% interest today.  If you are brave enough for an ARM (ask me), they are even lower -- in the high 2%'s.

And jumbo mortgage interest rates -- up to $725k -- are even lower still.  You can get a 30-year fixed today for 3.75%.

Yes, I know it seems like there is nothing to buy, and lots of competition for what is out there.  But don't give up while the rates are this low...

Interest rates went up today

I don't think there will be any more loans under 5% for the time being. Some buyers may decide to wait awhile longer before purchasing. Stay tuned...

Another reason to be thankful -- low interest rates.

Interest rates just took a dive. A conforming 30 year fixed rate (up to $417,000) can be had today for 5.375%. It's 5.5% for loans up to $625,000.

I hope you find many things to be thankful for this Thanksgiving!

Good news on interest rates

...Most interest rates are at or slightly under 6% again. This probably won't last, but it's a good sign.

However, there seem to be very few new listings during the past couple of weeks. Inventory is getting shorter, which is partly seasonal, but not a good sign for buyers.

Lenders are easing up on 2nd appraisals

For awhile this summer, just about every home in escrow underwent an "appraisal review" or even second appraisal. The banks didn't trust their own first appraisals in a declining market. This was problematic in that it added extra time to the escrow process, and of course, many homes were deemed over-priced that hadn't been considered so before.

Now, lenders are easing up. Yes, there are still lots of appraisal reviews, but that's happening as a final condition before loan funding, and usually don't involve an actual second appraisal. This is great news as it removes yet another stumbling block from the process. Oh, more great news: interest rates are back below 6%. I don't know how long they'll stay that way, though.

Good news for buyers and sellers...

Even though there is turmoil in the financial markets, there are still loans to be had with small down payments. A buyer needs only 3% down for a conforming FHA loan and the seller can contribute up to 3% in closing costs. Other loans can be obtained with only 5% down.

And, interest rates are down a little bit. They are still fluctuating, but nobody expects much of a rise there over the next few weeks.

"Stated income" loans are also still possible. These are loans for people who don't get a regular paycheck, are self-employed, or small business owners, etc. A buyer needs 2 years' worth of tax returns and good credit to qualify.

So, if you need to buy a home now, you might find the lending possibilities to be broader than you thought.