Interest Rate Watch APB

Interest rates have fallen into the 5.5% 30 yr fixed range.  This is quite a sweet spot for those who are considering refinancing and purchasing.   At the beginning of this year, when rates were around 5% for a 30 yr fixed, many people took advantage of the opportunity.

Please contact your local loan officer.  Our office works with many.

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About S-Crow

"S-Crow" (Tim Kane) is co-owner (with spouse Lynlee, LPO-Designated escrow Officer) of Legacy Escrow Service, Inc., an authentic independent escrow firm closing residential purchase/sale and refinance transactions.

18 comments:

  1. 1
    Shaq says:

    Hard to believe many people will be in an equity situation to take advantage of this.

  2. 2
    alex says:

    I always used johnlscott’s “default” rate as an indication of what the market is like for interest rates – and that’s showing 6.125% today… are they way off, or is S-Crow?

  3. 3
    vboring says:

    http://www.bankrate.com/

    provides a survey of rates and a chart where you can compare different types of rates

  4. 4
    S-Crow says:

    Alex,

    I have no idea how often JLS updates their rates. That could have been the rate for a week ago. Rates will change during the day. They bounce around. Further, with conventional loans, if I have a FICO score of 680, and you have a 765, you will be receiving a better rate than I.

    The emphasis on my post is that those who are refinancing or in the market to buy, should really be watching intensely.

  5. 5
    robroy says:

    Low rates are a good reason to refinance, but a bad reason to purchase. I like to purchase when rates are high for two reasons. First, it depresses prices. Second, you can probably refinance later when rates drop. If they are already low, you sort of eliminate that option.

  6. 6
    S-Crow says:

    High interest rate vs. low price issue:

    Food for thought…….You have the very best of both worlds when you have low rates AND declining prices.

    In some markets across the country, people are buying at severe discounts WHILE doing so obtaining excellent financing. Not everyone is in this pool of buyers but those that are are taking advantage of the opportunity and have a long-term horizon.

  7. 7
    rentalbliss says:

    I locked yesterday at 6.125 and used my one rate change today to get 5.875, when we started the process we were qouted 6.5. This is much better rate than I thaught we would ever get, so yeah for us.

  8. 8
    Ray Pepper says:

    FHA 30 year Fixed 5.50 Nat City. 1% orig fee. they will waive the .5 dis. not bad…but first you must FIND THE GEM!

  9. 9
    Sniglet says:

    There will be plenty of GEMs in a few years when median prices have dropped over 50%. Even better, interest rates will still be low, and probably even lower!! Of course, lending requirements will likely be even tighter than they are today, so if you have concerns about being able to make a large down-payment or proving a good income then maybe it is better to buy now and just let your place go under-water.

  10. 10
    kbro2699 says:

    I looked at rates at BECU’s webpage after I read this and noticed something interesting to me. Their new auto APR is 5.24 while their 30 year fixed mortgage is 5.6.

    Is this typical? Granted I don’t have the specific terms for the auto loan.

    Seems like a house should have a better rate than a new car.

    Can I infer that houses will depreciate more than new cars from this information?

  11. 11
    Ubersalad, Ph.D says:

    Auto and RE rate are completely separate and in no way directly connected.

    As for the rate, as much as it benefits on some personal level, overall it is meaningless to the overall market and economy.

  12. 12
    mukoh says:

    BECU is awesome just refied my expiring rentals with with them, got a great deal

  13. 13
    kbro2699 says:

    Yeah, I understand that they aren’t connected and are tied to different bonds, etc. I don’t know if I ever remember seeing auto rates from banks (not mfg. financing) lower than their own mortgage rates.

    Just curious if others have seen this very often.

    And I just find it amusing that a bank would offer me a better rate to buy a new car (typically rapid depreciation!) than to buy a house (always goes up!).

  14. 14
    cm says:

    The auto loan has much shorter term than the 30 year mortgage, much less interest rate risk for the bank, therefor they can offer a lower rate.

  15. 15
    Mike2 says:

    And I just find it amusing that a bank would offer me a better rate to buy a new car (typically rapid depreciation!)

    I’d wager that if you tried to finance a car that cost 3 times your annual income the rate would be very unattractive compared to a home loan for the same amount.

    That, and the typical car loan has a 72 month duration, so principal is paid down much faster than a 30 year fixed mortgage.

  16. 16

    If you’re interested in refinancing, I strongly recommend that you be ready to lock. I’ve had many sitting on the sidelines who think they’re going to get the lowest rate and with how quickly rates can change (we’re averaging 2-3 intra day rate changes w/most the lenders we work with); rates can go up as quickly as they came down.

    Today I was able to lock conforming jumbos at the rate S-Crow is quoting.

    With how the DOW closed today, I’m anticipating that rates should stay low tomorrow…however, with this market, things you could once predict no longer hold true!

    I would ask your LO what their policy is if rates improve after you lock. I know this is a savvy group….but please do get a good faith estimate to accompany your rate quote…and last bit of advice is that rates are highly credit score sensitive. The lowest mid score (if you have two borrowers) is what your rate will be priced on. If you’re working with a LO who just shoots off a rate without asking for an estimate of your credit score, run away!

  17. 17
    Seeker says:

    Did anyone try that loan company? They are proposing 5.6% for 30 y fixed.

    http://www.expressloanamerica.com/

  18. 18

    […] rates for purchases and refi’s are anywhere from 5.25% to 5.125% at par. Earlier this year, I sent out an APB for people who are waiting for super rates.  Here they are again.  Let me know off-line if you […]

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