Did the Fed rate increase effect Mortgages?
As you likely heard, the Federal Reserve raised interest rates by .25% in December, but mortgage rates have actually dropped significantly since. There are a multitude of reasons mortgage rates are down, but mostly it is the rapidly falling oil prices which have pressured the stock market to drop, resulting in lower yields for treasury bonds, which in turn influence mortgage rates.
Sounds complicated and it is, but what it translates into is a great opportunity to get a low interest rate on a new home purchase, or refinance your existing home to take out some equity for needed improvements, debt consolidation or simply a lower monthly payment. If you bought your home before the recent market price improvements and are still paying monthly mortgage insurance, this may be your chance to really save some money.
We watch the stock markets and the treasury notes hour by hour every day and can make sure you get the best possible interest rate at the lowest cost. Things can change very quickly, so give Dave a call now and get all of your questions answered so you can take advantage of these low rates.
David D. Paul, Mortgage Loan Officer, NMLS # 194398.