Over the last few months we have heard rates are going to go up – it's just a matter of time. None of us expected to see interest rates stay where they are, let alone drop from where they were this spring!
The Federal Reserve met last week and left rates unchanged, which was expected. Their statement said that while there is economic growth, there are lingering threats too. Their concerns are employment, bank lending, household wealth and also economic concerns in Europe. That helped lower rates slightly.
If you are looking at buying a home or refinancing, now is a great time to talk to your loan officer about locking in your interest rates. We know rates won't stay this low forever and who knows, maybe they will drop a little more – but with rates as low as I've seen in almost 20 yrs, it's time!!! I don't think any of us would complain about a mid 4% interest rate!
Right now conventional 30 year mortgage rates are in the mid 4% range, 15 year rates are between 3.875% and 4%, FHA 30 year rates are about 4.5% – all of this depends on your credit score, loan to value and what type of loan you are doing. Your APR will vary depending on the loan program and your closing costs. For your personal situation, contact your loan officer and see what you can do!
We know where interest rates were yesterday, we know where they are today, but no one knows what the future holds. We know they won't stay this low forever!!