Oct 01, 2013

- originally posted September 1, 2013 -

Since May of 2013 we've seen mortgage interest rates rise from 3.35%, to just over 4.5%.  That sharp jump in rates occured when investors reacted to the FED who said - that historic low interest rates were about to end soon. 

During August, 30-year mortgage rates rose to just over 4.5%, which has shut-out a number of entry-level buyers from the market.  As of September 1st though, we're now seeing rates drop a little.  In the past few weeks, markets responded to economic news about the economy still being weaker than expected, in several areas.  From national new home sales being down, to over-priced stocks, and including the possibility of military action in Syria.  These are all contributing to the recent pull-back in rates.  

Because rates have already risen more than 1% since the beginning of summer, it's unlikely they'll continue to rise at this pace for the remainder of the calendar year.  Volatility with interest rates will remain high however.  For home buyers, its going to be increasingly difficult to outwit the market.  My advice is to "lock" any rate under 4.5%, and forget it.  The risk may be greater than the reward just to seek a tiny improvement in your rate.  For buyers looking at Jumbo loans, financing rates have been falling.  Check out this article by the Wall Street Journal.  

Till next month,

Interest Rates As Of September 1st, 2013

6-month trends graph - as of September 1st, 2013

 

 

 

 

Interest Rate Advice

The long term expectation is for interest rates to rise. Don't take these low rates for granted. If you're financing a home right now, my best advice is to "lock-in" these low rates, rather than gamble that they'll be lower as you get closer to your closing date. Better be safe, than sorry!

If you're in the market for a home this year, allow me to help you find the right lender and loan program, and help you take advantage of these great low interest rates. Today’s interest rates are still quite a bargain!