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How Low Can Rates Go?

If you are in the market to buy a new home or refinance your current mortgage, you probably have noticed interest rates dropping considerably over the past week.  Many expected rates to increase after the Federal Reserve stopped purchasing mortgage backed securities (MBS) at the end of March, but recent global events have played a heavy role in driving mortgage interest rates down temporarily.

These economic conditions can change in an instant.  We are strongly encouraging all of our clients to lock in these low rates as soon as possible.  One good piece of positive economic news can cause interest rates to increase again, and it can happen quicklyNobody knows for sure, but we believe there is a small window of opportunity here – do your research and make your move.  Low rates = lower monthly payments, higher rates = higher payments. 

  • Average 30 Year Fixed:  Rates for 30-year fixed {conforming mortgages} are around 4.75% this week (down from 5.125% last week).
  • Average 15 Year Fixed:  The average 15-year fixed mortgage rate is around 4.09% (down from 4.25% last week).
  • ARM Rates: Rates for 5/1 adjustable-rate mortgages (ARMs with a 5 year initial fixed rate), are around 3.44% (down from 3.42% last week).

For our clients in California, don’t forget about the California tax credit of up to $10,000 for newly built homes, and up to a $10,000 tax credit for first-time homebuyer of existing homes.  These credits were available beginning May 1 and be good through Dec. 31, 2010, or when funding is exhausted, whichever comes first.  

SERVICE GUARENTEE 

WE GUARANTEE A SMOOTH LOAN ORIGINATION PROCESS OR WE WILL REFUND UP TO $400 OF YOUR CLOSING COSTS

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