Interest rates are jumpy. They are tied to the T bill, so as the stock market jumps around so will interest rates on mortgages. For the weekend I am being quoted by a major lender in the Twin Cities a rate of 6% on a conforming,30 year conventional mortgage and 6.5% on a FHA 30 year mortgage. We could get distraught and say what terrible rates, or one could say those are still good rates. The second answer is correct. Rates are still low.
Consumers need to remember that 22 years ago we had double digit interest rates on mortgages Looking at a 40 year history of interest rates, these are good rates.
I am expecting these rates to slide up and down and go from 5.75% to 6.5% in the months to come. You need to have a purchase agreement signed in order to apply for a mortgage and then lock-in your rate..It does no good to worry about rates and not be in the buying mode. One has to stop testing the temperature of the water and jump in.
This is an excellent time to buy. House prices continue to fall. Donald Trump, who made his fortune in real estate, says buy low and sell high. Guess what, this is the time to buy low! I am not sure what people are so fearful of. We all need a roof over our heads ,and it is better for you to profit from owning that roof than the landlord.
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