Today the Feds increased the 10 year TBill to 4% up .75 basis points from just a few months ago. This is just the beginning of inreases to interest rates as a conforming loan at a 30 year amortization is just about 6% today. The TBill is what most mortgage interest rates is based on, the higher the TBill the higher the interest rates. I am advising my clients who are shopping for a home to LOCK their rates now and even pay for the extension if need be because I believe the market is just beginning to turn up the heat on interest rates as a way to stay in business. With oil at over $130 a barrel only time will tell where this will all end. Be a trusted advisor to your clients and get those loans locked!
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate
Jill: Perhaps if consumers get the idea that rates are not going to continue to fall, they will get off the fence and get out into this buyer's market and get themselves a home. Sounds like a great idea to me.
May 28, 2008 05:33 PM
JimmyMcCall.com - Cunningham, TN
The Ex-Mortgage Consultant
Jill, I felt it today. The good thing is I have everything locked. I am worried about one with a zoning issue locked at 5.5%. I already had to get a 30 day extension in which the seller is paying. As long as the zoning oges through we will be okay otherwise the buyer is looking at 6.25% or even higher. Wish me luck
May 28, 2008 05:36 PM
Kane & Associates call 510.908.9002 - Alameda, CA
CRS,e-PRO,HAFA,SFR Broker, Northern California
After being in the business when interest rates were around 16% or more, rising to 6 or 7% is still a bargain.
May 28, 2008 05:37 PM
Subscribe to CommentsComment