Mortgage Rates Back Below 4 Pct Are You On The Fence
Mortgage Rates Back Below 4 Pct Are You On The Fence
I know that I have been speaking about the mortgage rates for over 6 months now and I was directing my posts to my clients who were upset that they missed the low of the mortgage market. About 1 1/2 years ago the mortgage rates were in the low 3.00's , these clients wanted to kick themselves for not getting the house they wanted, and were waiting for the rates to go further down. As it got close to 5% they thought for sure they would never see the rates go below 4% again.
Rates did go down below 4% and for the past 6 months they have been between approx. 3.5% and 3.875%. Last week the interest had one of the largest spikes in the past 2 years when it went up .25% and over that 4% mark, it did recover and it is back under 4% at 3.95%.
The Fed is raising the rates, when and by how much we all need a wheel of fortune to know. Are you still on the fence about buying a house because of the interest rates? You do understand watching house prices go up and down does not mean anything compared to the interest rates.
Here is the take on the mortgage market from people who work the mortgage market 24X7'
"Rates have been on an unfriendly rise for the better part of 2 months. Last Friday was the fastest rise in over a year and a half. Today’s pause could be a head fake on the way to still higher rates. Rates are still very low from a historical standpoint, but are certainly higher than mid Jan lows. Locking is a safe move since a further rise is as likely as a fall in rates. " -Michael Owens, Vice President of Mortgage Lending,
"Barring another financial and housing market implosion, and if the economy continues to improve, expect interest rates to rise in the latter half of 2015. If they do jump to the 5% range it will be a modest hike when compared to historical averages. Rates will still be far below the approximately 8.5% 30-year fixed-rates mortgages have averaged since 1971 when Freddie Mac started tracking them. Rates averaged 6% in the years leading up to the recession."INVESTOPEDIA.COM
Like the stock market the mortgage rates cannot be timed, you have to pick a spot to get in and rest with your decision. This comes from doing your research and doing your best to understand and appreciate it is not so much to time the going up or down but is the interest right for you? Is it low enough to enable you to buy the house you want? Is the house you want realistic given your financial status? Does the rent you are paying make sense? Can you make the same payments or even lower your payments by buying a house?
On the fence talk to me I can help you through that fog called "home buying"
I am Bob Schmalz a California Licensed Real Estate Broker, I am the founder and owner of West Los Angeles Real Estate Group, handling all Real Estate needs from residential to investments To name a few of the cities we cover in West Los Angeles; Beverly Hills, Santa Monica, Brentwood , Pacific Palisades and Malibu are some of the most popular. Our beliefs are that our clients should have the knowledge they need to make decisions in there Real Estate Goals. In this way our clients helps us make the right decisions for themselves.
FIRST TIME HOMEBUYERS:INTEREST RATES BELOW 4% + LOW DOWN PA
"Mr. Robert Schmalz
West Los Angeles Real Estate Group
Keller Williams of Santa Monica
Santa Monica, Ca. 90405
Thank you so much for your assistance in buying a home. I was not sure if the purchase of a Home would be in my best interest this late in my life, but now after having moved in…it is a great feeling.
Being a first time buyer, I would like to share some of my experiences. It is always fun to watch HGTV and see how simple it is to buy a home. And I thought, well that is not that difficult….Man was I wrong. Many of my homeowner friends told me all the weird things they encountered, but I believe my home purchase topped it all. -And in the midst of it - Bob ….by my side every step of the way…calming me down when angry, motivating when frustrated, happy hour when celebrating. He cared as I have never experienced before, ask and you shall receive.
Here is the thought process that led to the biggest purchase of my life.
There is probably no better time to buy then now. Will the market drop further? Maybe. However, by the time you decide the market could be on the way up again.
Why buy and not rent again? Rent would be close to the same amount of the mortgage without the benefits.
How did I pick Bob to be my realtor?
I interviewed a handful of real estate agents, and Bob was interested in me as a person, not just a client. Over the entire “buying process", handling my requests to see property on short notice...and I mean short notice (sometimes within a few hours), working closely with the seller's broker, mortgage broker, bank, escrow, Bob was there to assist and handle it.
Bob was reachable for me at any time and his communication was immaculate. We exchanged emails and text messages until late into the night.
Especially as a first time buyer, you need someone that you can trust, someone with integrity. It is a scary and stressful undertaking when you buy. Bob was able to make that process smooth and handled any emotional difficulties well. I doubt anyone else could have handled it any better.
With great appreciation,