Heading into mid April we took a hit from a favorable jobs report in March
Interest Rates have been slowly getting better since October 2023. Here is a video I made that was a prediction that held true
After the turn on October 20, 2023 interest rates have improved approximately 1.75% to fee. Let’s hope the trend continues into the summer 2024
Two weeks after a positive report we get a set back
Interest Rates Take a Tick in the right direction end of January 2023
Interest Rates Update 11-11-2022 Finally some good news !
Interest Rates Update 8-1-22
Last week was an interesting week for interest rates because on Wednesday the Federal Reserve raised the federal funds rate by .75 basis points which would normally have a negative affect on our mortgage rates, but on Thursday and Friday, rates improved.
Interest rates Update 7-22-2022
July 2022 – Mortgage rates are still trending upwards. Here is a great video from our favorite lender describing today’s rates similar to the rates we had in 2008. But still most customers need a loan of some type to buy in today’s market.
June 2022 – Depending upon a lot of variables, a thirty year fixed was in the neighborhood of 5.25% last week and actually gained a little ground back.
If you are closing in the next three months, but haven't found a property yet, it is time to take Advantage of Lock & Shop
Lock & Shop will allow you to lock in an interest rate without even having a property address. It is up to the customer to pick the time frame but it can be 90, 120 or even 180 days. When it comes time that you find the property, we can look at the same lock period you picked in the beginning, and if pricing is better, they will give the lower rate.
Current Fiscal Policy will force Mortgage Rates to Rise
In the latter part of 2021 we saw a spike in inflation. Rising gas prices, supply shortages, international tariffs and all types of inflationary pressures.
Prices on real property have sky rocketed which is great for existing homeowners but this has become a challenge for future home buyers. To slow this process of home prices getting out of reach the government has adopted a policy of tempering it’s purchase of US government backed securities. From what I have been told they went from purchasing about 50 billion a month to about 5 billion a month. This process has caused mortgage rates to rise.
Please see our graph of target projections of what they set out to do and where the rate is today.
Two to three additional rate increase are expected in the next year and a half with the Federal Reserve hinting that the prime rate will be raised .25% very soon.
Interest Rates have Risen in 2022
As expected interest rates have been on the rise since the end of 2021. Our government has adjusted fiscal policy in an attempt to slow inflation and this effects mortgage customers.
Interest Rates have already jumped more than expected
In the latter part of 2021 we saw a spike in inflation. Rising gas prices, supply shortages, international tariffs and all types of inflationary pressures.
Prices on real property have sky rocketed which is great for existing homeowners but this has become a challenge for future home buyers. To slow this process of home prices getting out of reach the government has adopted a policy of tempering it’s purchase of US government backed securities. From what I have been told they went from purchasing about 50 billion a month to about 5 billion a month. This process has caused mortgage rates to rise.
The typical rate on a 30 year fixed has jumped from about 2.875% to about 3.875%. This will deter some buyers which should slow the demand for housing a little bit.
Two to three additional rate increase are expected in the next year and a half with the Federal Reserve hinting that the prime rate will be raised .25% very soon.