Mortgage interest rates are about the same as they were in December 2010. Rates have slowly been dropping due to the economy not moving as fast as some would like.
Last year we saw rates drop down to record lows until the economy showed sputtering signs of recovery with consumer spending increasing in December and positive movement in the labor market. As the economy showed signs of improvement, interest rates increased. As this spring continued, the economy showed that the improvement was not sustainable yet. Now over the last six weeks, interest rates have dropped back to lows not seen in six months.
If you are looking at refinancing and haven't done it yet, talk to a lender about your home value and see if it's possible. This is a second window for those that didn't refinance last fall. Like last fall, we don't know how long these rates will stay around or if they will drop any lower. We still have the same underwriting issues with home values and tighter credit standards, but if you qualify, it is a great time to refinance your home loan.
If you are looking at buying a home, this will help you qualify for more home or reduce your payment on the mortgages you were looking at. If you are buying a home this summer, now is definitely the time to be looking. Rates have dropped between .25-.50% over the last few weeks. Your exact interest rate will be dependent on what your credit score is, how soon you are closing and what mortgage program you are using.
Talk to your loan officer and see where rates are. If you have found a new home, it may be time to lock in that rate so you know where your payment will be. We never know when rates will start to increase until it's too late! If you are comfortable with the rate today, then lock in. If you want to gamble, then you can wait, but tomorrow may be the day that rates start to increase.
Leslie Vanderwerf, NMLS ID#335509, Advisors Mortgage - Email – Website
