We are watching rates and will be happy to contact you should an opportunity arise.
I hope you had a good week. In order to keep those on my "trigger list" updated, I am planning to send regular (at least weekly) emails to keep you up to date on mortgage rate trends. Should we reach your personal trigger point (based on your current loan and your goals as we have discussed) I will contact you directly. These emails should keep you informed in the meantime.
Today's update: Rates this week have moved sideways. 30 year fixed rate mortgages are still above 6%. Five and Seven year ARM's (adjustable rate mortgages) are between 5.25% and 5.5%, I believe that these rates are inflated due to the risk seen in the mortgage market and may be getting extra pressure from the anticipated increase in loan limits for Fannie Mae and Freddie Mac (Government Sponsored Enterprise- (GSE) created to purchase mortgages in the secondary market). Interest rates overall have increased nearly a full percentage point since the recent low in late January. I believe that the run up was too extreme and the market will ultimately support lower rates in the near term. Because of the extreme volatility in the mortgage market, it is advisable that borrowers are ready to strike when rates do fall in order to take full advantage. Though there is no way to predict the direction of mortgage rates or when they will move I believe that conditions and economic data in the upcoming weeks will result in an opportunity to lock in significantly lower rates. That said, I am hesitant to predict rates as low as the late January level (5.375% on the 30 year loan) in the near term without significant negative economic data or geopolitical pressures.
The above is my opinion based on my eye on the market. All rates noted are for conventional mortgages with a loan to value of 80% or less and credit scores above 680 with no points. Scores below 680 would result in a higher rate or higher costs. Points (additional cost paid or financed at settlement) can lower the interest rate.
I will let you know as opportunities develop. Any comments are appreciated.
If you are considering purchasing a home in Maryland and want to be sure you are mortgage ready, my brother Tony and I will be happy to help! We help to make the mortgage process a pleasure!
If you already own your home, we are happy to provide a no-cost mortgage review to help you to determine if refinancing may be in your best interest. Please contact me at 410-960-2061.