Mortgage rates are down today and may improve even further tomorrow. Floating your rate may save you money, but in this environment there are no guarantees.
A trio of mortgage rate friendly data was released today.
- Consumer confidence is @ a 10 month low and consumer expectations is @ the lowest level since July 2009.
- The FDIC announced the Problem Bank List grew 27% from 552 to 702 in the 4rth qt of 2009.
- The NAR says no meaningful recovery in commercial real estate until 2011.
All 3 contributed to lower rates. Remember, bad economic news is generally good news for mortgage rates.
The 3o yr fixed rate mortgage is in the 4.75% to 5.25% range for well qualified consumers. 15 yr fixed is 4.25% to 4.625%. Rates are dependent upon credit score, loan purpose, loan to value, property type and whether you pay points / origination fees.
These low rates will not last. Most expect a gradual rise throughout 2010.
To lock in on today’s low rates I’ll need a complete application and a current credit report. Click Here to apply now! Or, call toll free 877-627-9211 x 104 for a FREE, no obligation quote.
In the past year the government has enacted several new rules to protect consumers and stop appraisal coercion by evil bankers and brokers.
HVCC (the appraisal code of conduct) has already forced many experienced and qualified appraisers out of the business. It has also helped to propel home values lower by allowing Appraisal Management Companies to seek out the cheapest appraiser (inexperienced, out of area appraisers who have no knowledge of the local market) so they can fatten their profits.
The new Good Faith Estimate has certainly helped to confuse more consumers when they try to compare financing charges for purchasing or refinancing a home.
Of course, the lenders and regulatory agencies (Fannie, Freddie, FHA) have helped too by tightening up on their financial requirements to purchase or refinance.
All this consumer assistance hasn’t been totally successful. Consumers are still slipping through the cracks.
WILY, CUNNING AND DETERMINED CONSUMERS ARE STILL MANAGING TO PURCHASE OR REFINANCE HOMES AT EXTREMELY LOW MORTGAGE RATES! THIS IS TOTALLY UNACCEPTABLE!
If the government really wants to help consumers, they could force everyone who wants to purchase or refinance a home to take a two month training course so that the consumer clearly understands how the government has helped them. Consumers should have to pay for this training and a final test. The training and test money could be used as a much needed income stream for further government housing assistance.
The government could get Homeland Security involved as well. By requiring all consumers to provide fingerprints and hair follicle samples we might well prevent a covert terrorist cell from purchasing a safe house. And if Homeland Security coordinated with the local DMVs to collect unpaid traffic/parking tickets from consumers attempting to purchase or refinance, another income stream would be generated so that local politicians could go on more Global Warming junkets to exotic places.
Lenders and regulatory agencies could also assist consumers by demanding more skin in the game. Instead of a 20% down payment, how about a 50% down payment?
I’m confident that, working together, we can force all of the greedy and diabolical loan officers, appraisers, inspectors, real estate attorneys, homeowners insurance agents, etc, out of the financing business once and for all. We can shut down the housing industry altogether. All we need is a little more “HELP”.
Posted by Terry Brunner. Terry is a Senior Loan Officer with Horizon Financial. Terry can be reached toll free @ (877) 627-9211 x150 or email TBrunner@HorizonFinancial.org. Visit Horizon’s website at www.horizonfinancial.org
According to Forecasts.org (an independent mortgage rate forecasting organization), rates are forecasted to go up slightly in 2010. This is based on several calculations and forecasting models that use several financial indicators to estimate future mortgage rates. They are projecting rates to increase about a 1/4% to 3/8% in the coming months. If you were thinking of refinancing your mortgage or purchasing a home, now may be the best time to move. There are many great deals buying homes now in South Carolina and North Carolina. Call your mortgage professional to get Pre-Approved and start home shopping. Plus you may qualify for up to an $8000. IRS tax credit. Good luck and don’t miss out on these great low mortgage rates.
-Gary Schoenholz (864)979-1111. 15+ Years of mortgage experience. Website: www.GarytheMortgageExpert.com