As a loan officer, I hate it when I hear commercials on the radio every day blabbing about how low interest rates are, knowing that these companies are really just using the old "bait and switch" technique through their advertising. The truth is, you're not going to get a ridiculously low rate unless you have very perfect credit or if you pay for it (doing a "buy down"). The rest of the United States gets a more average rate, which just happens to be VERY low right now.
WHY RIGHT NOW?
These low rates can be attributed to stock prices falling, which in turn made more people start purchasing treasury bonds (which is what investors do when they need a safer place to put their money). The result are rates that are dipping extremely low for almost anyone with a solid job and a credit score over 640.
HOW LOW?
For example, Freddie Mac reported in their latest report that the average interest rate for 30-year fixed mortgages was 4.84 percent, which is easily the lowest its been all year. As for 15-year fixed mortgages, the average is 4.24 percent, which is the lowest it's been since 1991, which is when they initially tracking this type of data. WOW.
What's surprising is that this is the exact opposite of what everyone was predicting a couple of months ago when the FED stopped purchasing mortgage-backed securities. Some "experts" even claimed that we would see rates jump as high as 10%, which LUCKILY didn't (or hasn't) happened.
WHATS NEXT?
So what exactly is the point of all this? Well, obviously, lower rates make it MUCH cheaper to purchase a house, and you can save literally thousands of dollars over the life of your loan. Furthermore, it actually IS a great time to buy a house right now!
If you would like to get a free rate quote, or if you would just like some information about getting a home loan, don't hesitate to CONTACT US and we will get back to you as soon as possible.
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