HomeReady Mortgage Program

Looking to own a home but not sure you can afford or even qualify for a mortgage?  You might be surprised by the terms of the HomeReady mortgage program, which is specifically designed for creditworthy low- to moderate-income borrowers, offering expanded eligibility for financing.  Note that a credit score of at least 620 is recommended to qualify and further benefits are accessible with a credit score of at least 680.  If that sounds like you, here are several ways in which you can benefit from a HomeReady Mortgage.

Low Down Payment

You’re able to finance up to 95-97% loan-to-value (LTV) for the purchase of a single-unit principal residence, which means that if you’re having trouble coming up with a sizable down payment, you’ll be able to get a mortgage with as little as 3 – 5% of the purchase price of a home, plus fees.  Additionally, gifts, grants, Community Seconds program funds, and cash-on-hand are all permitted as sources of funds for the down payment and closing costs.  And this is not limited to first-time buyers, so you’re still eligible if you’ve purchased a home in the past.

Flexibility

HomeReady Mortgages support HomeStyle Energy, manufactured housing and HomeStyle Renovation type homes.  They also support expanded access to credit responsibility through underwriting with rental unit and boarder income and non-occupant borrowers such as a parent.  There is also no minimum contribution required from the borrower’s own funds.

Unlike standard requirements for other mortgages, HomeReady offers lower mortgage insurance coverage requirements for loans with LTVs greater than 90%.  Insurance is cancellable after the loan balance drops below 80% of the LTV, i.e., after home equity reaches 20% of the purchase value of the home.  Both of these features can lower your monthly payment when qualifications are met.  For those with a credit score greater than or equal to 680, there are risk-based pricing waivers which offer yet another route to better pricing.   

Qualifying Income

HomeReady can be used to purchase or refinance any single-family home, given a few requirements.  First, the borrower’s income must meet the eligibility limit.  Properties in low-income neighborhoods have no income limit while all other properties require that the borrower make 100% of the area’s median income.  Keep in mind, as mentioned previously, that income requirements can include flexible underwriting options such as a parent or other family member.

Education Requirement

Additionally, there is an education requirement which consists of an online Framework course which must be completed by at least one borrower on the HomeReady purchase transaction.  This isn’t just a requirement, however, it’s also a benefit to the borrower.  It provides an understanding of the full spectrum of home ownership so that borrowers may make a confident, informed purchase with peace of mind knowing what’s ahead in terms of responsibilities and costs.  Additionally, working one-on-one with an available counselor can help a borrower pick the right timing, the right house, and the best mortgage for his or her financial situation.  If a Community Seconds down payment is involved, borrowers may instead complete their education course or required counseling so long as it is provided by a HUD-approved agency and is completed prior to closing. See this link for more details. 

Those with a disability, lack of internet access, or other issues may utilize other available delivery methods of the education requirement by calling Framework’s toll-free customer service line (855-659-2267).  This education requirement benefits the borrower by helping ensure sustainable homeownership and a stable financial future with informed decision-making and responsible risk awareness.

Ready to take your first steps toward home ownership or looking to refinance your existing home mortgage?  Contact us so that we can help you put your dream of home ownership within reach.


Are You Ready? 5 Tips to Prepare for Mortgage Approval

Buying your first home is an adventure that can be as scary as it is exciting. In the end, it’s a destination well worth the journey. Buying a house, especially compared to renting, isn’t just a permanent home for your family. It’s a long-term investment in one of the most stable economic markets in the world.

Congratulations on starting this adventure.

Here are a few things you can do to get ready for mortgage approval: 

Estimate How Much House You Can Afford

There are multiple online calculators available to help you pinpoint exactly how much you can afford to pay per month in mortgage, but as a general rule, aim for no more than 2.5 times your gross annual income. If you make $58,000 a year (the average household income in America), a $145,000 home should feel very comfortable, financially speaking. How much that comes out to per month in mortgage payments, however, depends on a few different factors.

Know Your Credit Score

In general terms, the higher your credit score, the better the interest rate you’ll get, but not always. The housing market, the Fed, and the overall strength (or weakness) of the economy also contribute to interest rates. Just know that it’s not entirely personal, and unless you can make a bigger down payment, your interest rate isn’t going to be easily malleable.

For a $145,000 home with a 20% down payment, your monthly payment will be about $550 per month in principle and interest at a 4% interest rate. As a reference point, your payment increases to $620 a month at 5% interest. Note that this doesn’t include tax.

Maximize Your Down Payment

A higher down payment results in a lower mortgage payment. Period. For a $145,000 home, a 3% down payment will cost you about $755 a month in principle and interest, including PMI (see below). A $30,000 down payment cuts your total loan so much that you can expect to pay $150 less, about $620 per month. When you get into the $200,00 or $300,000 house range, the difference between a 5% down payment and a 20% down payment is the difference between a Ford Focus and a Cadillac CT6. 

Knowing your comfort level is important. It’s easy to forget that a mortgage is just a loan. You’re borrowing money. Being realistic about your employment status, future earnings, and borrowing limits is key to smart home ownership.

Saving for as large a down payment as possible is not just a matter of lowering your monthly payment. It can also be the difference between buying a house with 3% equity compared to 30% equity. Just because you can afford a $190,000 home with $10,000 down doesn’t mean that’s the right financial decision, especially when a $150,000 house with a $30,000 down payment may be the safer choice.

Weigh the Pros & Cons of PMI

If you don’t put down at least 20% of the home value, expect to pay PMI, or “Private Mortgage Insurance.” This is literally an insurance policy for lenders loaning money to someone with limited savings. Those who cannot put down at least 20% are seen as higher risk, so PMI is used to protect lenders against the threat of loan default.

PMI ranges from 0.3% to 1.2% of the total amount of the loan. Assuming a minimum 3% down payment, expect to pay an extra $420 per year ($35 per month) to $1,600 ($140) in PMI on a $145,000 house.

The downside of PMI is that it’s non-refundable. If you can avoid paying it–if you can afford a 20% down payment–do. The extra hundred dollars a month can be invested in far better ways, offering far better rates of return.

The benefit of PMI is that many people wouldn’t be able to get into a house without it. If a 1% tax makes the difference between renting–literally paying for your landlord’s mortgage–and paying down your own mortgage, there’s no reason to hesitate. In the two to five years it takes to pay down your mortgage to an 80% loan-to-value ratio (the equivalent of 20% in equity), the 4% average return on the housing market has no comparison to paying rent for five years with no assets and no equity. 

Don’t Forget Taxes

Taxes and fees vary by state, city, and ZIP code. Ask your realtor for a realistic analysis of projected taxes for the area you’re looking to buy.

How much you can afford to pay in mortgage per month depends on your annual income, down payment, credit score, and the cost of the house you want to buy. Use Zillow’s mortgage calculator for a general idea of what size house you can comfortably afford, or contact us today to see how we can help get you into a house that’s right for your family, your future, and your budget.


Homeowner 101: Five Hacks for Easy Home Repairs

When you get the keys to your new house, are you prepared to fix common little problems like a clogged drain, or change out the air vents, or shut off the water? The one downside to owning your home is that you’re responsible for the maintenance, and you’re on the hook for the bill if you have to call in professional help. Since houses don’t come with owner’s manuals, these are the five most common home repairs or fixes you’ll face as a homeowner.

Clogged Drains

Clogged drains are some of the most common home repairs you’ll encounter. The first thing you need to know is that not all drain clogs are created equal. An assortment of unspeakable things go down the various drains in your house, and each one has a different fix.

Shower/Sink

Try a commercial drain cleaner, and if that doesn’t work, try a plunger–a plumber’s friend–to break up the clog.

Kitchen Sink

Try plunging the sink drain with a plumber’s friend first. If that doesn’t work, put a bucket under the sink and remove the sink trap–that’s where most sinks back up. If the clog is further down the line, you’ll need to go to a home improvement store and get an auger, or a plumber’s snake, to completely clear things out. The auger drops down the drain and you crank the wire until it hits the clog; keep cranking and it should break through.

Toilet

Again, try plunging first, then use the auger to try to break through the clog. If there’s already overflow, it might be time to abandon DIY and call the plumber.

For any drain clog, if you can’t get the clog to break up without a lot of work, call a plumber–the pipes are more delicate than you might think and a plumber charges a lot less to unclog a drain than to replace pipes.

Find Wall Studs

You could go to a home improvement store and buy a stud finder, but it’s easy to do if you know a bit about construction. Wall studs have to be at least 16 inches apart, and electrical outlets are usually placed at a stud so that the wires have a support. The baseboards are also nailed to studs, so look for nails under the outlets. Rap on the wall at that spot with your knuckle, you should hear a thunk. Rap three inches over and you should hear a hollow sound–the thunk is the stud. Measure 16 inches over, and you should find another one. The studs are a couple of inches wide, so you’ll have to play around to find the middle.

Replace An Air Filter

Air filters trap all the dust, dirt,and pet dander that are in your house, and your should replace or clean them monthly. If you have a permanent filter, it still needs to be washed out every month. First, remove the furnace cover and see what size filter you need. You can order them in bulk, or get them at any big box store. Once you have the right size, pull out the old one and slide the new one in; replace the cover. Repeat in thirty days.

Shut Off Water

If something is leaking and it’s not the roof, you’ll need to turn off the main water valve. That’s usually in your basement, or on an outside wall near the utility area of the house. If you don’t know where it is, go find it now–better now than when you’re standing in three inches of water. Turn the valve clockwise and the water to the entire house is turned off.

Finding the Squeaks

If your house creaks and squeaks, there’s not necessarily a ghost in residence–it could be a number of things.

Furnace Whistles

Cold ducts whistle when warm air comes through. Pad the ducts against wood framing so they don’t rattle, and make sure there’s nothing blocking the return.

Loose Hinges

When a hinge gets a little loose, it gets a little noisy. Take the hinge pin out and coat it with naval or petroleum jelly, and put it back. Slide it up and down to grease the channel until it quits squeaking. Squeaky hinges make for satisfying home repairs!

Hardwood Floors

Hardwoods shrink around the nails after awhile, causing squeaks when you walk across the room. You can fix it by going under the house and drilling a screw through the subfloor into the wood. Just make sure it doesn’t poke through on the other side. There are also nail systems that go through the right side of the floor and the nailhead pops off so it’s invisible.

Pacific Mortgage is here to help you through not only the mortgage process, but we’re around after you move in, too–so when you’re ready to buy a house, give us a call–we’re you’re lifelong mortgage partner.


3 Ways to Prepare for Mortgage Approval

You have been wanting to move into your own home for quite some time, but are not sure where to begin. In order to work towards mortgage approval, here are three things you need to do to really invest in the future you want. Remember, if you are not able to move into your dream home right away, you can always move later. The point is to get started!

Know What You Can Afford

Do you have a household budget? If not, please sit down with pen and paper or spreadsheet and create one. You will amazed how much disposable income you actually have at the end of the month. Look at everything, including your Starbucks habit. Work hard to account for every penny. It seems like a daunting task, but it really isn’t. It’s the first step in your mortgage approval process. Here is a short list to get you started:

  • Begin with your paycheck. What is your monthly take home pay? If you have a partner, you need to include their information, too.
  • Deduct all fixed, monthly payment amounts, such as: rent, car payments, student loans, charge cards, utilities, child support, and anything else you may have.
  • Deduct all non-fixed monthly expenses. This part is more difficult. How much do you spend on gas, clothes, and dining out (even if you charge it), coffee, etc. The list may be long, but this is also something you have control of and can curtail if necessary. This is your disposable income. If it is higher than you thought, congratulations! Although, you may still want to tweak it, and you will see why in a minute. If it is lower than you thought, or perhaps you had no idea what it might be, you really need to take some drastic changes. These are not tweaks, these changes may include pleasure points you will have to limit yourself to. Did you ever think about how much you give Starbucks in a week? The cost of a White Chocolate Mocha is $4.75 without taxes. If you have one each day on your way to work, you are spending $23.75 weekly, $95.00 monthly. Let it be a weekly treat to yourself and you are still saving $76.00 a month. A 48 ounce serving container of Folgers, bought at Walmart averages $9.98, and that’s without a coupon, see the difference? Put your money back into your pocket.

Review Your Credit Report

Have you actually looked at your credit report? Do you know your credit score? This is taken very seriously by mortgage providers and significantly affects your chances for mortgage approval. Why, you ask? Because this determines how much money lenders feel comfortable lending you, and how high your interest rates will be. The lower the number the higher the rate, and of course the opposite is true: higher score, lower interest rate. Know your numbers, and if they are low, take steps to improve them. One sure way to improve them is to pay down or off your credit card debt. If you have any judgments, find out what they are for, and how you can get them removed; these bring down your score, fast. It may take a while to get this resolved, but in the meantime, you are taking other positive steps in procuring your home.

Save For a Down Payment

Now we go back to budget. You must make a down payment or in many instances, at least be able to pay closing costs. The positive steps you take in amending your budget will help you get to house shopping sooner than you realize. Earmark that money for a single purpose. Sometimes it is easier if you open a separate designated bank account, and immediately transfer it each pay period. Do not touch it; watch it grow. Were you able to find $100.00 a month? That’s $1200.00 a year. Good job! You are now much closer to buying your home.

Pacific Mortgage Group is here to help you get moved in to your home ASAP! Licensed in six states so far, and working with over 100 lenders, we are more than happy to assist in getting financing for your home loan. Contact us to see if you qualify for $0 closing costs. Let’s make you a homeowner.


Get Yourself a Cash-Out Debt Consolidation Loan for the Holidays

As you plan for the year ahead, have you thought about refinancing your home to get out from under high-interest credit card and personal debt?

If that seems to be throwing good money after bad, and risking your hard-earned equity, consider the benefits of a cash-out refinance to consolidate your debt.

The Real Estate Boom Benefits Your Home Value

The real estate market has recovered from the recession, and housing prices have been steadily rising for several years. Even if your home value dipped during the worst of it, chances are good that it’s not only bounced back, but that you’ve seen an increase of 5-10 percent each year. In simple math, if your home was worth $250,000 in 2008, it may well be worth over $330,000 today. And assuming your mortgage balance was $225,000 back then, by now it should have amortized down to $220,000, to be conservative. In this example, your equity has ballooned from $30,000 to around $110,000. So if your cards and other loans add to up $40,000, you’ve still got a solid equity cushion in the house, and there’s no need to fear you’re at risk with a cash-out debt consolidation loan.

The Math Is Better With A Cash-Out Debt Consolidation Loan

Interest rates on mortgages are still at what are considered historic lows–under 5%. Now go look at your credit card statements, and try not to cry. If you’re paying under 20% in interest, you’re one of the lucky ones–many cards carry interest rates of 24% or higher–whatever the limit is in your state. If you’ve got personal loan debt, that’s well over 10% as well–so if your balance for all your high-interest debt is over $25,000, you’re paying over $5,000 each year in interest payments–and if all you pay is the minimum, you’ll never pay those cards off.

Now, let’s say you’ve consolidated your debts into a cash-out debt consolidation loan, and your new loan-to-value (LTV) on your house is 88%. With reasonably good credit, your new interest rate is around 5%. Suppose your house payment on a $225,000 loan is $1300 monthly. A cash-out refinance loan, with a new balance of $280,000 and a rate of 4.85%, carries a monthly principal and interest payment of $1131, with an estimated $350 for taxes and insurance. That totals $1481 for all your monthly debt, since you’ve eliminated the five hundred or so dollars you’ve been paying in high-interest debt.

Getting Started With The Refinance Process

When you refinance your house, it’s very much like the process you had when you bought your home, only there’s no realtor involved. You’ll complete an application and get pre-qualified–our loan officers will then present you with your loan options, and you’ll work together to figure out which one is best for you. You’ll upload any documentation, and we’ll order an appraisal, title search, and payoff from your current lender. Your loan officer will also get the payoffs on those cards and other loans for you, so all you have to do is take out your scissors and cut up the cards.

Special Loans And Cash Out Refinancing

Most mortgages are conventional loans, but if yours is an FHA or VA mortgage, don’t worry–you can get a cash-out debt consolidation loan under those programs, too.

A VA refinance is pretty straightforward; provide your Certificate of Eligibility and meet the lender guidelines, and you can tap into up to 100% of your equity. You are subject to VA loan limits, however, and they vary by area.

If your current mortgage is FHA and you want to stay with that loan program, you can get a cash out FHA refinance. If your credit score is on the lower side and you don’t qualify for conventional financing, you can borrow up to 85% LTV with an FHA loan. As with VA, FHA loan limits are based on your location.

Start the new year off debt-free, with a cash out debt consolidation refinance.


Avoid These Six Home Improvement Mistakes

One of the best ways to add value to your house is through a home improvement project. However, there are plenty of pitfalls when it comes to remodeling.

Here are six critical mistakes to avoid:

  1. Not talking to your real estate agent ahead of time. Before you decide on any renovations or remodeling projects, it’s imperative that you sit down and discuss your plans with your real estate agent first. Their knowledge of which home improvements projects are beneficial—as well as their knowledge of current remodeling trends—is very important. Also, they’ll be able to provide you with references for trusted contractors.
  2. Focusing only on cosmetic areas and not on structural issues. Too many homeowners spend their remodeling dollars solely on more superficial areas rather than on structural areas. Having a new master bathroom may be your dream, but you should also concentrate on your home’s wiring, plumbing, walls, roof, and foundation. Ignoring these areas could cause major problems—along with major expenses—down the road.
  3. Making improvements that aren’t equal to your home and neighborhood. Overdoing it with your remodeling project can be a problem as well. For example, an upscale kitchen remodel—complete with state-of-the-art appliances and high-end countertops—may not be right for your home and may be a turn-off to potential buyers when it comes time to sell. Your agent can help you decide if your project is appropriate for your home.
  4. Not vetting your contractor. To avoid getting burned by shady workmanship, make sure you interview several contractors and vet them thoroughly. Along with your real estate agent’s referrals, you should also consider referrals from business associations, your local government and personal or professional contacts. Also, make sure your contractor is licensed and insured and can provide you with a written estimate for all work.
  5. Attempting a DIY project—when it’s not a DIY project. Even if you fancy yourself as being pretty handy around the house, you should know your limitations. Tackling a project that’s too much for you can be expensive if a contractor has to come in and fix what you’ve done incorrectly. Saving money by doing a project yourself is certainly nice, but don’t bite off more than you can chew.
  6. Not getting the proper permits and ignoring regulations. Whether you’re doing the work yourself or having a professional do it, make sure you get the proper permits and stick to all regulations and codes. Bypassing the permit process or completing a project that’s not up to code can cause big headaches when you sell your home, not to mention the fact that it could be very dangerous for you, your family and your contractor. ∆

 

© Left Field Media


Mortgage Options for Retirement

Whether you’re retiring five years from now or 25 years from now, your financial situation will be one of the keys to a happy retirement. Your savings, investments and retirement income (if any) will be your main focus, but you’ll also need to look at one other important area: your mortgage.

Depending upon your financial situation and retirement goals, you’ll have a few options with your mortgage when it comes time for you to retire. Let’s take a closer look at those options: paying off your mortgage, keeping your mortgage (or getting a new one) and refinancing your mortgage.

Pay Off Your Mortgage. For many retirees or soon-to-be retirees, being debt-free during retirement is the most important goal. If you’re one of these people, then paying off your mortgage—either before you retire or within a short time after you retire—may be right for you. By eliminating your monthly mortgage payment, your cash flow will improve and you’ll have one less item of debt to worry about. Paying off your mortgage may take some long-range planning, so talk to your mortgage professional now about your current mortgage and payoff options, if applicable.

Keep Your Mortgage or Get a New Mortgage. Being debt-free may be a nice goal, but if you have to up your current monthly mortgage payment by quite a bit just to pay off your mortgage early, you may be better off keeping your mortgage and investing that “extra” money elsewhere. If you’re looking to relocate for your retirement or downsize into a smaller home, you can also “trade” one mortgage for another. Also, by keeping your mortgage or getting a new one, you’ll have the added benefit of continuing to take the yearly tax deduction on interest.

Refinance Your Mortgage. For many people, this is the best option. With today’s still-low interest rates, refinancing into a fixed-rate mortgage—either with the same term or a shorter term—will keep your payments low and give you much more flexibility in terms of your finances when you retire. If you’re relocating or downsizing for your retirement, however, refinancing may not be the best idea because you may not be able to recoup your costs. Also, if you’re considering refinancing into a short-term loan in order to pay off your mortgage sooner, keep in mind that the higher monthly payments may reduce your ability to build up a nest egg for your retirement.

To get a better understanding of your financial situation when you retire, talk to your financial planner and make sure your mortgage options are part of the conversation. ∆

 

© Left Field Media


Lack of Comparable Sales

“THERE HAVE BEEN VERY FEW HOME SALES IN OUR AREA. HOW CAN WE SET OUR LIST PRICE IF WE DON’T HAVE ANY COMPARABLE SALES TO GO BY? ALSO, TO COMPLICATE THINGS, WE’VE MADE A LOT OF UPGRADES.”

 

This is a situation in which having an experienced real estate agent who knows your area is vital. Not having any recent sales in your neighborhood—and the fact that your home has undergone a lot of upgrades—does provide a few challenges, but a good real estate agent will be able to help you set a fair list price. The problem can be attacked from several different angles. To arrive at an initial list price with very few “comps” to go by, your agent will consider a wide range of factors including your location, current market conditions, your square footage, the year your home was built, distance to services, and your home’s overall condition. In terms of the upgrades you’ve made to your home, although any upgrades will increase its value, you probably won’t get a dollar-for-dollar return on your investment on those particular projects. Your agent will certainly know this and take it into account when determining a good list price. In the end, keep in mind that looking at comparable sales is indeed helpful in setting your list price, but it’s not the end-all be-all. Rather, an agent’s experience and knowledge is much more important and useful. ∆

© Left Field Media

What Can I Afford?

Whether you’re buying a home for the first time or considering a move into a new home, how much you can afford—in terms of a mortgage and general housing expenses—is the biggest calculation you’ll need to make.

To figure out how much you can afford, first you’ll need to calculate how much of your gross monthly income can go towards your mortgage. When doing the math, your goal is to have your monthly mortgage payment not exceed 28 percent of your gross monthly income, although that percentage isn’t necessarily set in stone. However, if your calculations come to quite a bit more than 28 percent, then you may need to scale back on how much you can afford in terms of a monthly mortgage payment.

Next, figure out your total debt and what percentage of your gross monthly income goes to that debt. This calculation will give you a rough estimate of your total household expenses. As a rule, your total debt should be no more than 36 percent of your income. Much like your earlier calculations with your monthly mortgage payment, 36 percent is just a general guideline and you may come in over or under that number by a couple of percentage points.

Once you’re comfortable with those figures, take into consideration general expenses directly relating to your new home. Not only should you look at one-time expenses such as moving and renovations, but—more importantly—also look at general homeowner expenses that you may incur each month such as maintenance, homeowners’ association fees and unexpected home repairs. For this, it’s a good idea to budget in 30-40 percent more than your monthly mortgage payment.

Finally, after you’re done with your own budgeting, you’ll need to get a pre-approval from your lender. With a pre-approval, a lender determines how much they are willing to lend to you by assessing your income, assets, employment and credit history. Once you have a pre-approval, you’ll know what your price range is for buying a home. Keep in mind that the purchase price of your new home doesn’t need to be the same as what your lender is willing to lend—it’s okay to buy a home that’s less than what you’re approved for.

The key to not overextending yourself is to make sure to leave plenty of space in your budget for unforeseen costs and expenses. If you’re going to err, make sure you err on the side of affordability. ∆

 

© Left Field Media


Current & Future Interest Rates Trends October 18′

Now that the traditional spring/summer buying and selling season is over, let’s take a look at how interest rates have been trending—and what may be in store in the coming months.

Generally, the interest rates on a 30-year fixed-rate mortgage and on a 15-year fixed-rate mortgage have been stable throughout the spring and summer real estate season. In the chart below from Freddie Mac’s Primary Mortgage Market Survey, the interest rates have fluctuated only 0.12 percentage points on the 30-year fixed-rate and only 0.14 percentage points on the 15-year fixed-rate from April through August.

This stability in the rates is something we’ve seen the last two years during the same April-August timeframe, with a variance of 0.17 percentage points in the 30-year fixed and 0.14 percentage points in the 15-year fixed in 2017 and 0.17 in the 30-year fixed and 0.12 in the 15-year fixed in 2016.

 

Month 30-Year Fixed 15-Year Fixed
April 4.47% 3.93%
May 4.59% 4.07%
June 4.57% 4.04%
July 4.53% 4.01%
August 4.55% 4.02%

 

The weekly figures for the last six weeks also show fairly steady rates. Since August 16, the 30-year fixed has varied only 0.14 percentage points and the 15-year fixed has varied only 0.14 percentage points.

 

Weekly 30-Year Fixed 15-Year Fixed
August 16 4.53% 4.01%
August 23 4.51% 3.98%
August 30 4.52% 3.97%
September 6 4.54% 3.99%
September 13 4.60% 4.06%
September 20 4.65% 4.11%

 

 

The steady interest rates are a result of a variety of factors that have been applying pressure—both upwards and downwards—on the rates. The balanced economy, strong corporate earnings and worries over rising inflation have applied upward pressure while slowing home sales, concerns about the global economy, and other international “drama”—such as the recent currency problem in Turkey—have applied downward pressure on the rates.

Going forward, two opposing factors that may influence interest rates in the near future are the Federal Reserve’s pronouncement that we’ll see one or two more hikes to the key short-term interest rate this year and the possible economic ramifications of the current tension surrounding tariffs and trade.

As always, to get the best information on interest rate trends, talk to your mortgage professional. ∆

 

© Left Field Media