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NOTES ON MORTGAGES
Spring 1996

Interest Rate Trends

The gently declining interest rate trend is now in question. The Chairman of the Federal Reserve Board, Allen Greenspan, has said that the economy is growing at a suitable rate, therefore; the "market" feels the Fed will not lower rates in the near future. Combine those expectations with a Presidential race that looks bad for a balanced budget and you have the recipe for unstable interest rates. For the time being, I would lock my rate in and float it down. ( A float-down allows you to lock in certain mortgage rates. Should the rate drop before your settlement date, you may re-lock at a lower rate with no additional charge. For more information on float-downs, please email dj@membrane.com.)

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Eastern United States Real Estate

Though conditions are improving, the Northeastern United States continues to see a sluggish real estate market. Housing prices have remained stable for quite some time. The hope that lower interest rates would stimulate home buying has not materialized, however; the astute buyer realizes the opportunities of a "Buy Low" strategy.

Mortgage Resources

DANIEL BROUSE
Email brouse@membrane.com
(800) 783-9333 x192
(610) 397-0330 x192
Beeper 215-960-5556

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