Market Update: The weather may be cold but interest rates are heating back up!

Mortgage and Lending with Homes Mortgage NMLS# 366970

Good morning,

It’s been a chilly month so far but at least interest rates are warming back up. With any luck the temperature will follow!

While there hasn’t been a dramatic jump on any given day over the past week, there have been consistent positive purchasing in the bond market and mortgage backed securities on a day by day basis over the past week, leading to some great breaks in interest rates. The economy as a whole has been moving slowly and that has benefitted the end result of interest rates coming into this week. The key to watch out for is that when we hit these low rates, they don’t seem to stay for long before we see a reversal of fortune.

One key piece of information that is good to pass on to homebuyers in these times is how much the interest rate affects their bottom line on a home. For homebuyers waiting for the best possible purchase price on a home, they need to consider that paying more for a home at a lower interest rate can in many cases be to their benefit with a lower monthly payment than getting a lower purchase price on that house but having to pay a higher interest rate from letting these rates rise back to 5% while they wait.

Rates: 30 year fixed at 4.50% and the 15 year at 3.875%, FHA: 4.25%:

As always rates change with individual credit scenarios and programs, with credit in the mid 700s and a 20% down payment these rates are what you should be seeing.

Have a great week!



Matt Royer Mortgage Consultant, CMC | Homes Mortgage NMLS# 366970


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Matthew Royer

NMLS # 366970
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