banner
Business

Mortgage exec: No rate cut, no problem

Posted September 16, 2008
Updated September 17, 2008

Map Marker  Find News Near Me

— The Federal Reserve elected to leave interest rates unchanged Tuesday, confounding experts who predicted a rate cut in the wake of recent stock market volatility.

Jeremy Salemson, chief executive of Corporate Investors Mortgage Group in Raleigh, said he was surprised by the Fed's lack of action, but consumers shouldn't be concerned.

"(The) movement is not bad news by any means," Salemson said. "We didn't see it coming maybe necessarily, but just because they didn't cut rates doesn't mean (the housing market is) not moving in the right direction."

Mortgage rates are near 40-year lows, so it's a great time to buy a house or refinance, he said. 

"If you're not comfortable, wait. Let's see what happens when consumer confidence returns," he said. "In the Triangle and, really, across the country, interest rates have their own mindset, and they do what they want to do."

Salemson said mortgage loans are still accessible to many people, and applications are up nationwide.

"You just have to be willing to document income. You have to have a good credit score – and when I say 'good credit score,' it doesn't mean you have to have the best score of 740 or above. But you've got to be willing to sort of play within the rules," he said.

Likewise, car loans are still fairly easy to obtain, he said.

Salemson said people should discuss their financial situations with a professional before making a move. But he said people don't have to wait for the Fed to act.

"We still need help in the housing business, but the good news is that interest rates are getting better. They're still very strong, and it seems that consumer confidence, which to me is still the one factor missing and needed to return to normalcy, hopefully is starting to return," he said.

6 Comments

This story is closed for comments.

Oldest First
View all
  • us-citizen3 Sep 17, 2008

    uncdeadhead, exactly, one would think that someone who is writing mortgages would know what indexes they are tied to. My experiences in the mortgage business is that allot of loan officers have absolutely no idea how the mortgage industry actually works and what drives it.

  • uncdeadhead Sep 17, 2008

    This guy is a mortgage broker and does not address the fact that mortgage interest rates are NOT tied to the prime rate, but to bond yields?

    If I ever buy a home, I will not do business with his company!

  • TheAdmiral Sep 16, 2008

    Unfortunately, they can drop to 0. Japan did it and it did not help them one iota.

    Unfortunately it is more and more evident that the market is creating these emergencies as a way to control the fed. And this particular one backfired.

    "I wish WRAL would get more qualified experts to give advise."

    I agree - you NEVER get a lawyer to give a lesson on ethics for lawyers.

  • us-citizen3 Sep 16, 2008

    (The) movement is not bad news by any means," Salemson said. "We didn't see it coming maybe necessarily, but just because they didn't cut rates doesn't mean we're not moving in the right direction

    Salemson obviously knows little or nothing about the economy to make an uninformed statement like that. fact is, if they are cutting rates then we would be headed in the wrong direction. Higher rates indicate a stronger economy not a weak one. this guy seems to know as much about the economy as the last mortgage expert WRAL used to use Amy Bonis, who by the way is not even licensed as a loan officer anymore. You can verify loan officer status at www.nccob.com then click on the "mortgage" section and then "licensee search" I wish WRAL would get more qualified experts to give advise.

  • bs101fly Sep 16, 2008

    rates can't drop much more or we bottom out and as far as putting money in a savings account, HA!
    DON'T BOTHER!

  • davidgnews Sep 16, 2008

    What's he going to do, say things are bad and cause more panic?

    Somehow, this is getting exciting. There's opportunity in chaos!