Historic Housing Market and Mortgage Rates

Clearly the housing market is turning around as prospective homebuyers are taking advantage of close to record-low mortgage rates and lower home prices, encouraging signs the industry is healing after a multiyear slump. Solid gains in employment, easier access to credit and a reduction in foreclosures will be key to boosting the rebound allowing housing to become a major contributor to economic growth. The median price of an existing home climbed 11% compared to Sept 2011 plus purchases increased over 10%. The supply of previously owned homes fell to the lowest level since 2006, and construction starts for new homes accelerated by 15% and new home sales increased to 5.7%.

A historic look back at average interest rates can only help remind us how good we have it. At the highest point in 1981 rates were 18.45% and in 2012 3.47%! See graphic below…

Mortgage Rates:
Mortgage rates were slightly higher last week and we expect volitility between now and the election considering all the uncertainty. While I doubt we’re going to see a long-term trend of rising rates, if you are looking for a mortgage in the near term its a good time to get the application process going as most lenders are way behind in underwriting. There is very limited upside in hoping that rates fall further compared to the risk that they may rise.

Give us a call if you are thinking of refinancing or are looking at purchasing a home or investment property, We will provide you a no obligation free quote. Please visit our testimonial section to see what our customers are saying.

CurrentConforming Rates
(Pmyts based on a average loan amount of $250,000) for a historical perspective on rates please visit my blog on our website
Loan Program Monthly Pmyt Rate APR Points
30YF $1122 3.50% 3.625% 0
20YF $1417 3.25% 3.87% 0
10YF $2385 2.75% 3.00% 0
15YF $1696 2.75% 3.125% 0
5/1 ARM $1020 2.75% 3.125% 0
7/1 ARM $1037 2.875% 3.375% 0
FHA 30YF $1105 3.375% 3.87% 0
FHA 15YF $1696 2.75% 3.00% 0
Current High Balance Rates – Max Loan Amount $625,500
(Pmyts based on a avg loan amount of $550,000)
30YF $2896 3.75% 4.00% 0
15YF $4319 3.00% 3.87% 0
5/1 ARM $2512 2.625% 3.00% 0
7/1 ARM $2595 2.875% 3.25% 0
FHA 30YF $2808 3.50% 4.00% 0

Disclosure: These are our current conforming and High Balance rates based on primary residences only, your actual rate could be higher depending on several “Risk Factors” such as credit score, LTV, Cash-out, Investment prop, 2nd home, zero cost etc. Please call us for an accurate custom quote including jumbo loans up to $2 million and beyond

The cornerstone of Trulending Mortgage is a fierce commitment to integrity, service and expertise and these core values have, thankfully, resulted in client relationships for life. We appreciate the opportunity to work with you on your next refinance or home purchase transaction. Please pass this along if you think we can help any of your close friends or family.

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