Mixed economic news gives strength to bond market, which in turn helps lower loan rates.
Mortgage rates have dropped to their lowest point in 2014, with conventional fixed rate loans dropping to 4.16% as of Friday, May 16th. This news flies in the face of predictions made late last year by some financial analysts who said rates would be over 5% this year.
What is driving these rates downward?
Stocks and bonds have a lot to do with interest rates as financial investors have been making significant moves toward the bond market in light of mixed news about economic recovery. Bonds, while granting potentially smaller yields than stocks, are a safer investment. A stronger bond market will almost always drive interest rates downward.
Buyers should lock in now!
While fixed rate mortgages are hovering just above the 4 percent range, other loan options are even lower*:
- 15 year fixed rate mortgage: 3.29%
- FHA 30 year fixed: 3.75%
- Jumbo 30 year fixed: 3.94%
- 5/1 yr ARM (Adjustable Rate Mortgage): 3.20%
*The above percentages are base rates for information purposes only provided by Mortgage News Daily. Actual rates may vary based on lender fees and your credit rating. Contact us for more details on loan rates and options that are right for you.
If you’ve been on the fence about making a home purchase, now is the time to lock in your mortgage rate to make the best of your purchasing power.
Can You Qualify For a Home Mortgage?
We encounter many people who are under the impression that they can never own a home because of their credit rating, or the fact that they don’t have 20% for a down payment. Did you know that FHA loan qualifications allow for lower credit scores and a down payment of as little as three and a half percent? You may be surprised to find that you actually can reap the benefits of home ownership, but you’ll never know unless you ask.
Contact the Lichen-Hooper team to find out more about qualifying for your dream home.