Mortgage Rate Market, Expert Advice, & Forecasts and Predictions (Wednesday October 12, 2016)
Without expert guidance, the mortgage rate market can be very confusing. Borrowers have to choose between fixed and variable rates, ARMS, 30-year versus 15-year term, Balloons, Jumbos, FHA, VA, or conventional mortgages, and so on and so forth. Individual credit scores further complicate matters, as many lenders advertise one rate but then try to sell you another.
In addition, borrowers have to decide if they believe interest rates are more likely to drop in the near future (making it advantageous to wait a little), or whether it is more likely rates will rise (increasing those monthly payments and the total financing cost of your dream home).
Likewise, homebuyers need to form an opinion about the direction of home prices and whether now is the right time to buy or stay put. Not to mention the fact that before you can buy, you first have to find a home you like, meets all of your needs, and just happens to be in your price range.
Add to all this the memory of the 2006/08 financial crisis and it is no wonder many would-be homebuyers are like deer in headlights.
Expert Analysis
The reality is home prices in many markets have rebounded strongly and markets across the USA, including Florida, Georgia, or California are booming.
According to a new transcript released by TRI Homes (TPH), for Quarter (2)two of 2016 there are low land bases, and increasing home prices, thanks to tightening land supply and builders confidence the condo and town home markets are surging again
Truth is, interest rates remain very low, indeed. Buy now and you can get more home for your monthly mortgage payment. Those who remain on the sidelines much longer, risk being left behind by rapidly rising prices, shrinking inventories, and the inevitable rise of mortgage rates.
The Avrus Team is here to help you navigate your dream home purchase by providing expert mortgage and financial advice accompanied by attractive financing programs. Avrus is a privately owned and operated family business since 1982. With decades of experience and a proven track record (over a billion dollars of loans closed.) Not only can we beat any written cost estimate and interest rate, we will hold your hand right through to closing. Welcome home!
Forecasts and Predictions
The transcript described above compiled by the regional real estate manufacturing survey of random participating investors shows the benefits of its re positioning by delivering another quarter of strong sales and gross margin improvement.
In recent years, there has been much debate if, and when, interest rates will finally begin to rise. Experts disagree and each news cycle seems to contradict the last one. GDP is up, Greece is going down, and the labor market outlook is uncertain. Not sure who or what to believe, consumers (i.e. homebuyers) are often left confused and paralyzed by all this ‘noise.’
In the graph above the rate on a 30-year fixed mortgage has been at historic lows in recent years. But the question is how the Federal Reserve affects mortgage rates with “Related Quantitative Easing” But does it work?) Factors range from inflation and economic growth to Federal Reserve activity.
At this point, the most valuable move you can make is to take a step back and see the big picture: current average 30-year fixed mortgage rates are at about 3.68% for loans up to $417,000 and 3.875% for Jumbo loans (for daily rate updates, please see: https://www.avrusmortgage.com/current-mortgage-rates-best-rates-today/ ).
In other words, current mortgage rates remain near historic lows, presenting a unique opportunity for homebuyers and wanna-be refinancers. Being this close to zero, mortgage rates have very little way to fall. On the other hand, if mortgage rates rise, even just a little, it will cost you thousands!
Bigger Home for Less Dollars
The key takeaway? Don’t be held back by worries about the past. Set your sights on the future instead. Go for your dreams!
Equally important, don’t let the forecasts and predictions of the interest rate “experts” keep you on the fence.
Predicting the moves of interest rates and bond prices over the next 72 hours (or four weeks, for that matter) may be important for professional traders in the financial markets, but is not all that relevant to the everyday homebuyer.
Purchasing your dream home is not about exploiting miniscule, short-term price fluctuations. Rather, it is about long-term planning, stability for you and your family, executing smart, empowered financial decisions, and finding viable ways to make a large purchase that you will repay over years to come. Making the right choices will be very rewarding for your bottom line and your lifestyle. Making the wrong ones could leave you in a lurch.
“This is to thank you (Avrus) for helping me get my payments to a low interest rate so I now have thousands of extra cash each month to buy things I never would have been able to buy without your help and advice.” - A. Torres
To be sure, you don’t need generic nationwide analysis. What you do want is customized, expert analysis that takes into consideration your personal account balances, cash flow, net worth, estate plans, tax consequences as well as your personal and family situation and future plans. You want someone to guide you, someone who knows your name and what you care about, as well as your local mortgage market.
We work with each and every one of our clients, individually, to find the best mortgage available. We have the relationships to search rates from many different lenders, on a wide variety of loan products and solutions that many banks will not even consider. That is why…
…We say yes, when Banks say no!
So now is the time to re-assess those buying decisions you’ve put on hold until the market gets better. It’s better. Call us today to discuss how you can take advantage of these low rates.
