Mon, Aug 17, 2009
The days of being able to read the market have dissipated. Most seasoned loan officers would keep a financial website open throughout the day to watch the stock market, 10 year bond market and a myriad of other reports that come out throughout the month, quarter, and year. But, with the recession, times are not predictable when it comes to rates. Therefore, you find us trusting our instincts and trying to decipher different employment, economic, and sales reports while scouring other’s predictions for a theme.
In short, rates have ranged anywhere between 4.5-6.5% for a 30 year fixed in the past year and a half. Quite often the spikes and dips cannot be connected to anything in particular. Rates currently are ranging in the mid to low 5s. If you want to read more about the interest rates, I found this article interesting: http://money.cnn.com/2009/08/13/real_estate/mortgage_rates/index.htm?postversion=2009081313
There have been some predictions that as the Federal Reserve backs off from buying treasury debt and the economic outlook improves, interest rates may begin to adjust in a more predictable pattern. I think everyone related to the lending would be delighted by this change. If nothing else, rejoice in the knowledge that current rates are about 1% below last year’s rates so that something to cheer about.
- Carrie Neidorf, Sun American Loan Officer serving Arizona, California and New Mexico mortgage-seekers. Contact her at 602-770-8977.