Category: Interest Rates

INTEREST RATES AND VALUES

Each month we send out the Interest Rates and Values email to keep you up-to-date with what is happening in the residential real estate market. We review and analyze mortgage rates and median sales price charts and data to keep you apprised of the trends in the marketplace. Here is the video we sent out this month. If you would like to receive these emails and videos, message me and I’ll add you to the list. We feel the more you know, the better you will be able to make a decision on purchasing and financing real estate. We stay...

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INTEREST RATES

You may be wondering why your interest rate is different from your friend’s, even though you both locked the rate at the same time. There are many factors that go into determining the interest rate. First is your credit score. The higher the score, the better the rate. Here is a blog we wrote on how credit card balances can affect your score: https://counselmortgagegroup.com/credit-score-tips-credit-cards/ If you are looking for some more tips on getting your credit score up, give us a call, we can help. Amount of down payment is another factor lenders use to determine the interest rate. The...

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I THINK I’LL WAIT FOR RATES TO GO LOWER

Here’s a blast from the past! Check out this video from the early ‘80s where buyers were hesitant to purchase a home because the interest rates were at 18%, and they wanted to wait until they came down. Lenders were offering a variety of creative financing options to help them, such as buydowns and contributions towards closing costs by the sellers and builders. The more things change, the more they stay the same. One thing is for certain, if they purchased in 1980 and held onto the home, they made some $$$.

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HOW QUICKLY WILL MORTGAGE RATES COME DOWN AS A RESULT OF THE FED’S ANNOUNCEMENT YESTERDAY?

The Fed’s announcement was very encouraging. They said they will likely no longer increase the Fed Funds rate, and look to decrease the rate next year. This is big news. The stock markets took off, and the Dow reached a record high. As a result of this good news, how quickly will mortgage rates come down? Should you wait for mortgage rates to come down prior to purchasing your home? Mortgage rates actually dipped yesterday on the heels of the announcement. But, will they continue to go lower, and how quickly? The Fed’s drastic move upwards was to tame inflation....

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A LOOK AT MORTGAGE RATES OVER TIME

Freddie Mac publishes a weekly Primary Mortgage Market Survey where they survey the 30-year and 15-year fixed mortgage rates. According to the survey, this week’s 30-year fixed rate is 6.96% and the 15-year fixed rate is 6.34%. The survey contains data going back to 1971. Looking at rates over the last 50-years, today’s rate is lower than rates in the ‘70s, ‘80s, and for the better part of the ‘90s. The highest 30-year fixed rate was in October 1981 at 18.63% and the lowest rate was in the beginning of January 2021 at 2.65%. Considering the spectrum of rates over...

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RATES ARE SUBJECT TO CHANGE WITHOUT NOTICE

  Are you in the market to purchase a home, investment or commercial property?   Visit the Counsel Mortgage Group website. We provide daily rates and we are happy to discuss lending specific to your needs. We offer a variety of products and services, ask us how we can assist you today. https://counselmortgagegroup.com/todays-rates/   Counsel Mortgage Group®, LLC www.counselmortgage.com 480-502-1000 NMLS #178927 AZ MB #0909580 CA DBO #60dbo43873 Copyright © 2021 Counsel Mortgage Group®, LLC.

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NOW IS THE TIME TO LOCK IN AN INTEREST RATE

When is the best time to lock an interest rate? I get asked this question often as everyone wants the lowest rate. Interest rates, like stocks, change daily; it is hard to predict whether the rate will go up or down. It is best to see what your payment is at the current rate, and take a look at what the payment would be if the rate increases or decreases by ⅛. Interest rates are quantified by ⅛ s, such as 3 1/8%, 3 1/4%, etc. You will then be able to calculate the risk. Example: if a difference in...

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RATE ENVIRONMENT: UP OR DOWN?

Right now, we are in a decreasing interest rate environment. Is there somewhere you can look to determine if interest rates are going up or down? We look to the interest rate on the US 10-year Treasury Note as a leading indicator for mortgage rates. As the 10-year rate goes up, mortgage rates tend to go up. Similarly, as the 10-year rate goes down, mortgage rates tend to go down. The rate can change daily, or it can change within the day. We are made aware of impending rate changes by following the intraday trading of the 10-year Note. If...

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