Sacramento Real Estate Views

Mortgage Rates Are Still Going Down

How Long Can This Last?

Honestly, I thought we’d seen the last of rate declines in 2006.  This is making that look ridiculous!

Rates are now the lowest that they’ve ever been or at worst are tied for the lowest rates have ever been.

On Thursday, FreddieMac.com came out with a report citing the interest rates averaged about 4.68% down from 4.71% the week prior.  That is SO low!

I had a potential client of mine tell me on Saturday that he got a quote for a conventional 30 year fixed rate mortgage, 20% down, at 5.5% and his credit scores were very good.  This seems as if it too high and I advised him to get a second opinion as you should if your quoted interest rate seems too high.

As of just now, rates are at 4.68% for a 30 year fixed rate mortgage. That will change so follow up with your lending resource for an update on rates. If you don’t have a lending resource, please let me know and I’ll be happy to refer you one of mine.

From FreddieMac.com

1)  Interest rates have never been this low since they started tracking it in 1971. (Wow!)

2)  Last year at this time the rates for the 30 year product was 5.53%

3)  Low mortgage rates and low housing prices are producing highly affordable housing conditions nationwide.

4)  New and existing home sales were 36% higher than in January and pending sales have gone up every month for the last 9 months.  7 of those months were THE MOST AFFORABLE HOUSING MARKETS ON RECORD SINCE 1971.

Now that’s news!

From Our Local Lenders

Pat Murphy, Guild Mortgage, 916-212-9451

pat@patmurphyloans.com

“Rates are starting to creep up a bit but are still under 5% at 4.875% this morning!  Yes, funds are available for many loans.  Yes, opportunities to buy have never been better.  Yes, you can often refinance.  Yes, you can!  Let’s find out exactly what you are entitled to!

Contact me for Free Advice – Honest Loans”

As always, please keep in mind that rates are subject to change in any moment.  They are very liquid and change moment by moment.  For the most up to date rates, please give Pat a call.

Thanks for visiting and Happy Holidays to all!

Tags: mortgage rates, Rocklin, Roseville, sacramento

January Interest Rates

The Lowest Ever

Interest rates have never been lower.  I don’t know that they can go any lower than what they have been this month.  While it’s possible to imagine that they could get into the low 4% range, I don’t know of any economist who thinks they will. That said, many of them have been incorrect about our current situation thus far. Going forward, it’s anyone’s guess as to what happens.  The new administration is shaking things up a bit but that’s a wait and see.

It Just Isn’t Significant

The difference between a 5% and a 4.5% mortgage just isn’t that significant to wait and risk that the rates will acutally go up instead of go down.

A $200,000 at 5% over 30 years, just principal and interest, is a payment of  $1073.64.  The same scenario at 4.5% is just a $60 a month savings. The savings is $720 a year in this scenario and about $5040 over a 7 year period.  We Americans aren’t very good at looking long term and the monthly difference between the two interest rates just isn’t enough to wait making a decision to buy, risk they will go up and then cost yourself money over the long haul if they do go up.

Read the rest of this entry »

Tags: mortgage rates, Sacramento homes

Are you FED up?

Who the heck can figure out what’s going on with interest rates right now? The FED lowers the prime rate which, in the past, has brought down the cost of borrowing. But not this time. So what’s the problem?

The credit/mortgage crunch that started in 2007, and now with inflationary concerns, is still and will continue to affect the real estate market for some time to come.

While FreddieMac.com is reporting an average interest rate of 5.72% for a conforming 30 year fixed, lending rates are up. Two rate decreases in the last 2.5 weeks, FreddieMac reporting well under 6% yet getting a fixed rate below 6% without paying points is next to impossible. To say this reflects a lack of confidence in the economy is an understatement.

While the FED is considering another rate cut, the concerns over inflation are pushing mortgage rates higher. The bond data is good but inflation is the real concern at the moment. Until the concern over inflation subsides, don’t expect a decrease in mortgage rates.

The rule of thumb? FED rate cuts do not always mean that mortgage rates with follow suit. There are many more economic factors that enter in to the mix that determine what lenders will charge for their money. For more on this, check out this article from MortgageNewsDaily.com. Great place for “truth in lending”.

Tags: interest rates, mortgage rates, the fed