I have spent many a blog post pointing out that right now the market is volatile when it comes to interest rates and the speed at which they change, but not only the changing rates we have seen loan programs changing more than some rate sheets as of late. I think it is important for everyone to keep in mind that my own comments are a picture of the market condition, a snapshot, and it reflects viewing todays market in the short term. Having said that I wanted to point out some long term statistics, on average over the last 20 to 30 years an average home loan rate would be approximately somewhere between 7.50 to 8.00 percent. If your fairly new to the industry or began your career in the last 5 years this rate seems down right punitive. If you have been in the industry for a very long time or approaching retirement you can remember home loan interest rates at 10% and beyond. I am somewhere in the middle this marking my 20th year in the banking industry, I happened to start my banking career at 8am on 8/08/88, I am sure those of you who are into numbers may say there is some kind of meaning there, when I got into mortgages in 1997 I was working 12 hour days refinancing rates to 7% 30 year fixed loans and everyone was ecstatic that it had gotten so low. My point is in the last 2 months the range on 30 year fixed loans has been anywhere from 5.50 to 6.375, this week we happen to fall around the middle of that scale. Please keep in mind while rates can change rapidly we are by historical standards at a very opportune time to finance a purchase or refinance your home. We have a supply of homes that are on the market and when there is this supply the opportunities abound.
Darren Stewart
OakStar Bank
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