I was asked a question about mortgage rates the other day, and the context of the question implied that rates were much worse today than they were last year. Actually, except for the ARM products, which have moved up just over where they were a year ago (5.76 average last November compared to 6.05 this year on a 5 year ARM), the two common fixed rate mortgage products are right where they were last year. On an 80% to value 30 year fixed mortgage, Freddie Mac reports an average rate of 6.31 and points averaging 0.4. This is where these rates were one year ago. Similarly, the 15 year fixed loan at the end of last week was at 6.02 with 0.04 points, whereas last year it was 5.95 and 0.04. Interestingly, while checking on the rates, I noticed that refinancing activity is still over 45% of mortgage activity. 25% of loan activity last week was in ARM products. It seems many folks are still using their home equity, as well as locking in fixed rate loans.
Because of the election this week, I'm not going to try to predict where interest rates are going to be next spring. For now at least, rates are not making large moves one way or the other. With Interest rates still attractive and moving fairly smoothly, house prices in the Treasure Valley stable, and plenty of inventory to choose from, anyone wishing to buy a new home has a pretty favorable market in which to be shopping. If you are looking for a new home, I'm ready to help. What's YOUR Boise dream?
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