As we head into warmer weather, the real estate market also heats up, historically. Are higher rates keeping buyers on the fence? The answer is maybe. Interest rates are still low, when you look at them over the past few decades. For example, I bought my first house at 13.875% on an FHA 30 year fixed. I wasn't worried about it. That was the going rate at that time. Rates did go down and when I could refinance below 10%, I did. I ended up refinancing again at 8%.
If you buy now and rates decrease, you can refinance (after your sixth payment). If they stay the same or go up, then you'll be glad that you bought when you did. There are some bargains out there. I'd love to run some numbers to see what you would qualify for.
Just call me- Dru Scott 559-314-LEND
We Moved Our All Access Mortgage Office
After proudly serving California’s home loan needs from Clovis for 13 ½ years, we moved to 1300 W Shaw Ave., Suite 3D, Fresno, CA 93711. The email and phone numbers remain the same.
Called by some, the last honest Broker, we’ll still deliver great rates, fees, and outstanding service.
Whether you’ve worked with me in the past (lending since 1993) or you want to experience worry free financing that you’ll brag about, please give me a call.
Thank you in advance,
Dru Scott 559-314-5363/ email@example.com
What makes mortgage interest rates go up or down?
The simple answer is that mortgage rates are tied to the US economy. I don't want to get too technical and explain mortgage backed securities and their relation to the 10 year US Treasury Bonds, which is the pool of funds that banks draw from.
I want to keep it simple by saying mortgage rates are tied to the current value of a US Dollar. Inflation makes dollars worth less (higher rates) and recession makes dollars worth more (lower rates). We're coming out of an extended recession and coming into an inflationary period.
The rule of thumb in a rising rates period is "the sooner, the better".