WASHINGTON — Declaring "good news" in the midst of an economic meltdown, President Obama on Thursday urged families to take advantage of record low mortgage rates by refinancing their homes.
"We are a time where people can really take advantage of this," Obama said, seated with a handful of homeowners who have already lowered their bills.
Rates on 30-year mortgages have fallen and last week hit 4.78% on average, the lowest on record. Rates are down by more than a full percentage point from a year ago.
"The main message we want to send today is there are 7 to 9 million people across the country who right now could be taking advantage of lower mortgage rates," Obama said in a photo opportunity in the Roosevelt Room. "That is money in their pocket."
The president encouraged people to take advantage of a government website —www.makinghomeaffordable.gov— to see how they can get help.
In just a handful of minutes of addressing reporters, Obama read the website address aloud five times.
But the top U.S. housing official said later that interest rates on typical home loans will probably continue to fall from their current, record lows..
"I think you will see them continue to come down, based on everything that we're doing, but recognize that they've already started to make a big difference," Housing and Urban Development Secretary Shawn Donovan said on CNBC.
Donovan was speaking after the White House press event where Obama touted his plans to rescue the housing market.
In late February, the White House announced a plan to help 9 million homeowners win lower mortgage rates or lower their monthly bills to a more affordable level.
"Home purchases are up about 20% since we announced the plan so we are already beginning to see a difference," Donovan said.
The president credited his own government's efforts, in part, for contributing to a recent surge in refinancing. The collapse of the inflated housing market helped contribute to a meltdown in the financial sector and the broader economy, and millions of people have lost their homes or been at risk for foreclosure.
Obama also warned people to watch out for scam artists.
"If somebody is asking you for money up front before they help you with your refinancing," Obama said, "it's probably a scam."
Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Beach to Bay Real Estate Center is a full service real estate brokerage servicing buyers, sellers and renters at the Delaware beach areas. We handle all forms of real estate, including residential, commercial, and lots and land, in addition to bank owned, short sales and auctioned properties and representation; mortgage needs including refinances, new home purchases, second homes, first time homebuyer programs and reverse mortgages; maintain professional relationships with local settlement attorneys, insurance companies, contractors, and inspection companies; and are affiliated with a preservation and restoration company. Beach to Bay services all of Sussex County, and southern Kent County, with a strong focus on the beach resort areas of Rehoboth Beach (19971), Lewes (19958), Bethany Beach (19930), Dewey Beach (19971), Milton (19968), Millsboro (19966) and more.
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