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Archive for the 'Mortgage & Financing' Category
18% INTEREST RATES?
In the early 80’s I remember living in Los Angeles and looking for a home to buy. Interest rates were falling off a 18% high, and being young, I wanted to invest in the American dream of owning a home. Well, my father wouldn’t lend me the downtown payment of $8,000, so I ended up renting. But I remember in the subsequent year or two following that, as interest rates went to 13%, then to 12%, I thought I missed the boat.
It wasn’t until 1990 when a bought a condo using all the money I had to get a mortgage with a 9.5% 30 year fixed rate. And, I had to pay 1.5 points. It seems like a lifetime ago that interest rates were that high. We’ve had an unbelievable run of historically low interest rates in he past few years. In 2010 many more buyers were able to purchase homes with great Federal and State Tax incentives, Government backed FHA 3.5% interest rate loans, and rates as low as 3.8% in October. So, as we enter 2011, rates are spiking up, but still historically low. We began the year in 2010 at 5.03 at 0.7 points. We ended 2010 at 4.71 with the same points. The average in 2010 4.73. So where do we go from here?
Rates continue to be the lowest rates in the past 40 years. Despite the recent spike, if we never see 3.8%, or 4.3% again, but we continue seeing 5%, or even 6%, people will buy homes, condos, investment property, and land. People bought homes at 21%, 17%, 12%, and 9%…..But if you are thinking of waiting for that sub 5% rate, the wait may cost you $200, or $2,000…don’t wait.
Current rate for 30 year fixed mortgage is 4.69%.
Any rate questions, or if you need a pre-approval, call Greg Wickstrand. Greg works with HomeServices Lending, a part of Wells Fargo. Take a few moments and get informed. For Greg’s information, Click here.
