Mortgage rates are closely related to inflation. Mortgage
rates are based on the price of mortgage backed bonds. Inflation changes the
value of mortgage-backed bonds.
We are experiencing some of the lowest levels so far this
year. I don’t think most of us saw this coming and in fact prepared for higher
rates thinking most of the refinances that could be done were done
for now anyway… not true. If the mortgage rates drop below the expected 4% we
could see homeowners taking advantage of these lower rates and refinancing once again.
Also in favor of the homeowner and our economy Obama has extended the
HARP program to 2015, so if you are still underwater (owe more then your home
is worth) this is for you, contact a mortgage professional and learn how this
program can help you.
If your mortgage is 4.75% or above you should analyzed your
mortgage and see you can benefit from refinancing.
Now if you are a potential buyer and have been sitting on
the fence undecided about what to do… wow is this a good time for you. Mortgage experts are getting accustomed to
the new Qualified Mortgage rules or QM but this could potentially limit your
buying power and specially if higher rates became an reality but we got lucky
for at least the time being, so call a mortgage finance expert or myself and
get pre-
qualified to purchase a home while we are in this downward rate motion.
Thank you for checking out my blog, I hope you found some
value and will leave a comment or question behind. I welcome your input and
will get back to you ASAP. Don’t forget to follow my blog by adding your email
or following by Facebook or blogger.
Roxy Redenbaugh
ACMC Loan Consultant
Roxy Redenbaugh
Certified Mortgage Coach
Branch Manager
NMLS #269926
808-637-0011
