Mortgage Rates for October 20, 2011

We asked Craig Smith of Mortgage Master to give us his most current interest rates and what he was seeing in the market:

“Mortgage rates have risen off their recent ‘historic’ lows by as much as ½%.  For most of 2011, mortgage rates have moved in the same direction as stock prices, and stocks have risen by about 10% since October 3.  Mortgage rates have jumped during that same time period.

Where will they go from here?  Many financial analysts and economists think that the recent rise in stock prices won’t last due to the current economic weakness, and that we will see another drop in stock prices soon.  When that happens, we should see a corresponding drop in mortgage rates.  Will they go as low as they were a few weeks ago?  It is possible, but that is hard to predict.  Even if rates do not go back down, HOUSING AFFORDABILITY is GREAT right now!

Housing affordability is calculated using both mortgage rates and house prices.  Since rates are still in the low 4%’s and house prices have dropped, housing affordability is near historic lows.

This brings me to my next point:  There is a MISCONCEPTION that it is hard to get a mortgage right now.  That is NOT TRUE!  The mortgage industry is lending billions of dollars every month for those who qualify.  To qualify, a buyer needs sufficient documentable income, good credit, and money (savings or gift) for at least 3.5% down payment and closing costs.  Many current renters want to buy a home, but don’t believe they can!  They should consult their local Realtor or mortgage representative to find out if they will qualify.  Please spread the word!!!”

Thanks Craig!

Posted by Paul Walsh