Horizon Financial » September 2009 mortgage rate prediction

Rates Forecasted to go up in 2010… Rates Low Now…

admin — Fri, 05 Feb 2010 20:23:52 +0000

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.

http://forecasts.org/fha.htm

-Gary Schoenholz (864)979-1111. 15+ Years of mortgage experience. Website: www.GarytheMortgageExpert.com

3.875%. Might Be A Good Time To Consider An ARM

admin — Wed, 23 Sep 2009 18:42:11 +0000

30 year fixed mortgage rates remain at historically low levels. However, it may be a great time to consider an adjustable rate mortgage ( ARM ).

If you’re considering a home purchase or a refinance and plan to be in the home less than 5 years you’d be wise to review ARM loans. Today’s rate on a 5 yr ARM is 3.875% with no origination fee or 3.625% with a 1% fee. That’s over a point lower than the current 30 year fixed.

On a $200,000 loan that comes to a monthly savings of $140 compared to the 30 year fixed. Adding a 10 year interest only option increases the rate .375%, but saves over $365 per month compared to the 30 yr. That’s big savings.

If you’re certain you’ll be in the home less than 5 years this is a very safe loan option. You’ll be out of the loan before it adjusts.

Posted by Scott Fowler. For a detailed quote you can call me toll free @ 877-627-9211 x 104 or email SFowler@HorizonFinancial.org. Visit my website @ www.ScottFowlerTeam.com.

“The Recession Is Very Likely Over”

admin — Thu, 17 Sep 2009 18:16:09 +0000

Tuesday, Fed Chairman Ben Bernanke said the “recession is very likely over”. The much better-than-expected August Retail Sales Report adds support to Ben’s claim.

Stocks improved on the day and mortgage markets / rates worsened.

Could the days of super low mortgage rates be coming to an end. Maybe. Maybe not.

Since September, mortgage bonds markets have been in rally mode and mortgage rates have declined substantially. Investors fled the relatively risky world of stocks and moved thier money into safer investments like cash and bonds, including the mortgage-backed kind.

Risk aversion is common when market uncertainty exists but last year’s aversion was so strong, by late-November, it had forced mortgage rates down to an all-time low.

Since November, however, rates have been on the rise. Stronger economic data and a general feeling of optimism and recovery have helped stock markets improve. A lot of those gains are coming at the expense of low mortgage rates.

If you’re wondering what mortgage rates might do going forward, pay attention to Mr. Bernanke when he speaks. If he sees economic recovery ahead, it’s probably going to happen.

It should move mortgage rates higher into 2010.

Posted by Scott Fowler. Scott can be reached toll free @ 877-627-9211 x 104 or email SFowler@HorizonFinancial.org. Visit Scott’s website @ www.ScottFowlerTeam.com.