I hate to be the bearer of bad news, but better to be informed. In the past month we have seen one of the fastest moves up in mortgage rates I can remember. This upward trend reignited in early August and built steam from there.
The past two weeks in the credit markets have been, for lack of a better word, Ugly. We had huge sell offs last week with a few surprise numbers showing inflation higher than anticipated.
Here is a daily trend of the thirty year fixed rate from Mortgage News Daily, This is as close to real time as you can get for a look at mortgage rate trends as compared to the FHLMC number that is a week old when it is reported on Thursdays.
You can see the daily trend has been strongly up with huge daily moves. It is rare to see 1/4% move in a day, and look at how many times that happened in the last month.
Rates today are effectively double what we were at the beginning of 2022. To put that number in perspective it will cost about $680/month to borrow $100,000 on a 30yr mortgage. That is about $230 more a month than it would have cost in early January.
Remember, the mortgage is temporary. You will see a lot of lenders quoting with points to soften the blow, but paying points now may not always make sense if there is an option to pay 0 points. There is a strong likelihood that rates will come back down in the very near future giving the opportunity to refinance.
Some numbers to chew on: My average loan size is over 300,000 now, so if we drop to 5% in the next year or two, someone that borrowed $300k today at 7.25% would save $436/month, and if we drop back to 6% the savings is still close to $250/month. All while building equity with the potential for tax advantage. I think back to my first house when I paid 11.25, Refinanced to a balloon at 9.25, and again at 7.25 before I sold that house.... This isn't anything new it is just history repeating and we have become complacent with lower than average rates for an extended period of time.
If you need a Mortgage or an Equity loan, We can help- Everywhere but UT, Give me a call.
Robert Rauf
Mortgage Loan Originator NMLS# 248937
http://www.homebridge.com/RobertRauf
or my blog: http://activerain.com/blogs/rrauf
Office: (732)908-4868 Cell (732)740-0175
RRauf@HomeBridge.com
www.RobertRauf.com
Since 1987 I have been helping my clients fulfill their dream of home ownership! HomeBridge Financial Services, Formerly REMN, HomeBridge Financial Services is located at 9 Grand Ave, Building 2 Suite A Toms River, NJ 08753. NMLS #6521. New Jersey Licensed Lender and Mortgage Banker #L041053. Visit www.Homebridge.com or www.RobertRauf.com for more information. NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgage in Ocean County NJ, Mortgage in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731, Lacey 08731 08734, Beachwood 08722 Bayville 08721,
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