Where are Mortgage Interest Rates?

By
Real Estate Broker/Owner with M & M Realty of Brevard Inc. BK629999
https://activerain.com/droplet/4Fxd

 

Where are Interest Rates? Sandy Shores Florida Realtor

In real estate, mortgage interest rates are always a hot topic. Interest rates have been hovering above 4.00%. The projection is that they are going up. When interest rates go up, that affects a consumer’s buying power.  Higher rates often mean a lower purchase price of a home, as lenders look at the debt to income ratio of a borrower. Debt to income ratio is the percentage of a consumer’s monthly gross income that goes towards paying debts in comparison to their monthly income.

The interest rate on my mortgage is currently 5.875%.  I remember refinancing to get that rate. It wouldn’t benefit me to refinance again, to get a lower rate now, as I anticipate having it paid off within 18 months.  I wouldn’t be able to recoup the cost of the refinance in just the 18 months I take to pay if off.

I remember when interest rates were 13%. Heck, I remember when they were 18%. But, I also remember when houses were selling here in Melbourne for $25,000 to $50,000. Those same houses today are going for $150,000 and up.

Interest rates are projected to go up. And the word from analysts is to buy before they get too high. That’s probably pretty good advice.

To get an idea of what interest rates look like, check here. Your best source of information will be a local lender.

Where are mortgage interest rates?

 

 

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Topic:
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Florida Brevard County Melbourne
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Rainmaker
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Stefan Winter
Real Estate in IL & NV | Owner of Real Estate Web Tech | Daily Vlogger - Las Vegas, NV
Owner - Winter Group & Real Estate Web Tech

I was not in real estate when interest rates were over 10%, it seems hard to imagine, but also as you pointed out houses cost less. How the markets change in everything and value goes up so much for the same house.

Jun 25, 2015 01:50 AM #1
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John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

Thank you thank you thank you - EVERYONE always focuses on "oh well rates used to be 15%" but they completely ignore the fact that home prices were a fraction of what they are today.  Rates may play the rollercoaster of up & down for a while longer, but I think we've already seen their floor...people should lock in now if it makes sense for them.

Jun 25, 2015 01:53 AM #2
Rainmaker
671,701
Sandy Shores FL Realtor®, Melbourne Real Estate
M & M Realty of Brevard Inc. - Melbourne, FL
Brevard County Real Estate, Florida's Space Coast

Stefan, as we all know the market is cyclical. It appears that rates are headed up again, which means less buying power for the consumer. It's all part of the ups and downs of the market.

Jun 25, 2015 02:32 AM #3
Rainmaker
671,701
Sandy Shores FL Realtor®, Melbourne Real Estate
M & M Realty of Brevard Inc. - Melbourne, FL
Brevard County Real Estate, Florida's Space Coast

John, I think you're right. Rates aren't going down again. Looks like we've hit the bottom. So, now would be an ideal time to consider that home purchase.

Jun 25, 2015 02:34 AM #4
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Rainmaker
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Sandy Shores FL Realtor®, Melbourne Real Estate

Brevard County Real Estate, Florida's Space Coast
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