According to FED member Frederic Mishkin in an interview on CNBC this morning, we could see inflation begin to creep into the economy based on all the government programs on the drawing board.
If there is anything that will scare away bond investors…it is the word inflation. This combined with the summer driving season right around the corner which will inevitably lead to higher oil and gas prices means that we will likely see much higher mortgage rates in
the summer vs. now. In fact, the only real strength in the bond market appears to be the FED buying mortgage backed securities. When that ends in June, we could be in for a rough ride.
Based on that information, it would be prudent to seek out your mortgage needs sooner rather than later. Whether you are in the market to buy, or looking to take advantage of low rates to refinance, don’t get caought without a chair when the music stops.
If you would like to get pre-approved for a purchase or refinance, please call 850-221-8334 anytime.
| 30 Yr Fixed Mtg | 4.875% |
| 15 Yr Fixed Mtg | 4.750% |
| 30 Yr FHA | 4.875% |
| 30 Yr VA | 5.000% |
| Reverse Mortgage | Call For Rates |
Steve Russell
Mortgage Banker
Primary Residential Mortgage
850-221-8334 Cell
850-497-6325 Office
* All rates assume the purchase of a single family primary residence with at least 20% down payment, 740 credit scores, and verifiable income and assets. Rates vary based on borrower profile and property type. Rates are subject to change without notice. All rates also assume a 1% origination fee. Loans with no origination fee and no points may be available.
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{ 3 comments… read them below or add one }
Yuck, push those rates back down.
J Boyer’s last blog post..Liberty Greens Condominiums Morris Twp NJ 07960 Home Sales
Yes, rates are so low still. I am hoping they approve the 4.50% 30 year loans. Have you heard any updates on when they are trying to make their decision by on this? I think that would help a lot, however with all of the job losses, its hard to maximize that potential.
Scott’s last blog post..Montclair, NJ Real Estate & Relocation
Scott, mortgage rates are determined by the buying and selling activity of the FNMA mortgage bonds in open trading. For the government to come out with a “4.5% 30 year rate” would mean specifically a government sponsored mortgage program like FHA or VA.
If this were to actually happen, it is likely they will put some sort of outlandish restrictions on it that would eliminate many buyers from qualifying.
I don’t say that to be pessimistic, but it is an educated guess based on past performance.
There was a lot of excitement about the Help For Home Owners act passed last year, but the execution was so terrible and hard to qualify for that of the expected 250,000 home owners that would use the program, there have been less than 100 applications nationwide.