Mortgage Market Reports
We keep hearing reports that Mortgage interest rates are still be very low, ranging from 4.00% to 4.50% for a 30 year fixed rate. This is all dependent on your credit scores, your down payment (usually just on a conventional mortgage), the size of your loan amount, and the type of mortgage program. And if you want 3.875%, you just have to pay some points.
I am sure many of us have been extremely use to the low rates in the last 6 months, to where we have reached record lows since interest rates were first recorded back in 1971. But don't get to comfortable, because what comes down most go up. But when is the question...
Can predicting interest rates be tough? You betcha, especially in this market and you will have experts from both sides of the fence tell you that rates will stay low for another year or that they will increase drastically by the end of the year. But who truly has that crystal ball. All that most can do is speculate off of today's current data and trends. But it's been proven that all it takes is one day of severe bad news and rates can jump. So where am I going with all of this? Read more...
Mortgage Interest Rate Future Outlook
There is more uncertainty in today's economy than there was months ago. There is talk about a double dip recession. Yet, we have had back to back reports of home sales being up in August and September. On another note, just for the fact that MBS's are dropping in price, this can increase the mortgage rates in general.
The overall picture? Rates have moved a tad up and down for the last few weeks. If you think you have a good rate now, just lock in. Playing with the rate for a few days or a week or two is risky in my opinion. If you want to take a risk and have a bottle Pepto Bismol with you, then float, but don't try and get to greedy. In the short term, rates are still low and will be low, but not as low as they were several weeks ago. In the long term, rates are very questionable, and I feel that you will see rates increasing by the end of the year. By how much is another question to be answered in a few weeks.
News to look at : Keep in mind, usually with bad Economic news, this is usually good for rates. There has been a lot of talk about QE2 (quantitative easing by the Feds)and the Feds spending billions of dollars in a new stimulus package. The QE outlook has been tame recently and the Feds are looking to spend 500 Billion in Treasuries. Meaning, we could hit a bump in the road to where rates spike up, but then ease back down. Just be careful.
Locking Outlook : Very short term for 5 to 10 days : Lock your rate
Locking Outlook for the next Month : Cautiously Float
Word to the WISE :
If you see individuals and or mortgage companies offering mortgage interest rates under 4%, there could be many points and or high lender fees involved. What is being sold off on Wall Street right now are the 4.0% coupons. Just be careful in what someone might tell you or promise you just to get you in the door.
- Shopping for an interest rate - Biggest key point... shop on the same day, otherwise, it's really senseless.
- Rate lock or Float Options - Things that the loan officer should go over even when you are shopping for a rate.
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Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc