Mortgage interest rates remain at 30 year lows. One thing to remember is the rates one sees on TV or in print ads generally reflect ‘perfect’ borrowers; 20% or better equity, single family residence, fully documented income, debt ratios under 38%, credit scores 720 or better, loan amounts less than $417,000 on purchase loans and with no cash-out for refinances and maybe paying points. Is that everyone, no? Is that you, maybe? Contact me if you need to find out.
Here is what the chief economist of Quicken Loans has to say about this weeks mortgage market. I agree with his comments.
“Long-term interest rates remain near historic lows despite a small tick upward following last week’s employment data. Where long-term rates will go from here is unknown, but a good rule of thumb is that rates rise much faster than they drop,” says Bob Walters chief economist of Quicken Loans. “We are continuing to experience a trend of homeowners refinancing their adjustable rate mortgages before they reset, and getting into fixed-rate programs. We’ve also seen a higher volume of purchase activity, bouyed by low long-term rates dropping to levels that are more supportive of housing.”