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Bruce McCoy
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As I am writing this, fixed interest rates for conforming loans, now up to $333,700, are trying to test the lows of last summer. They still aren’t quite there, but within a whisper for the 30 year fixed. The bad news is that Jumbo rates and the 15 year rates don’t seem to be participating in this rally. The good news is that mortgage rates are falling just in time for the traditional spring home buying season! The other good news is that the loan pipelines are empty at most of the lenders. What this means to you is terrifically fast approval process when the lenders receive your loan file. The time it takes to get the file to the lender has also been slashed. Last summer appraisers were taking over 4 weeks to appraise your home, now appraisals are delivered in less than a week. On top of all this good news, because the lenders’ pipelines are so empty, the loan that may have been declined last summer has a better chance of being approved now!
Who knows how long rates are going to stay down here? My crystal ball is obviously in need of a tune up; but when rates are moving closer to a 40 year low, the most logical move for them next is up, not down much further. After all, the Wall Street bond traders who control long term interest rates can make money only by bonds going up or down, not by them remaining the same.
Is it a good time to sell your current home and move on up to that dream home that has one more bedroom, a bigger master bath, or just more room? Obviously this is a question that only you can answer, but the rates are coming down Just In Time!
Interest rates for conforming loans (under $333,700) as of 1/20/04 (a.m.) are:
(zero point option, for 2 points the rate is about a half point lower)
30 year fixed: 5.5% (APR 5.59%) payments are $1,894.71/mo.
15 year fixed: 4.875% (APR 5.03%) payments are $2,617.20/mo.