On Friday my loan officers were quoting rates on 30yr fixed mortgages in the 5.5% – 6% range again… which is down more than .5% from just a couple weeks ago. On a $200,000 house, that means a monthly payment that is more than $80 less than it was just 2 weeks before. Or in other terms, it would be like taking $13,000 off the price of a $200,000 home.
Economy in Trouble: Bad for Stocks, Good for Housing
January 24, 2008 By 1 Comment
As the news about a slowing economy and fears of recession mount, the stock market has taken a huge hit, falling double-digit percentages in the last couple months, but housing is benefitting.
As money has been taken out of stocks, it has been flowing into bonds, which are historically a very safe investment. When demand for bonds rises, that reduces the interest rate paid on those bonds. As the bond market goes, the mortgage market follows.
We’ve seen substantial improvements in rates in just the last week, testing new multiyear lows and closing in on all-time lows! With falling sales prices and lower mortgage costs, housing affordability is climbing quite quickly and if the mortgage rates stay at these levels into February, we’re going to see the best affordability on homes in the Twin Cities since 2004.
Twin Cities Interest Rates Drop to Multi-Year Low
January 10, 2008 By 16 Comments
Over the last couple of weeks I’ve been seeing rates on 30-year fixed mortgages fall substantially… I’ve seen some recent quotes for 5.5%!
When you look at a straight affordability perspective, taking 1/2% off the interest rate (which is what has happened in the last few weeks) on a $200,000 loan saves you $1000 per year in interest charges, which would be a monthly savings of $83 or is like taking nearly $14,000 off the purchase price of the house, as compared to the higher interest rate.
With inventory at record highs and affordability at 3 year highs, this is a great time to be a buyer. Below I have listed the loan officers that I recommend if you are looking for information on what you can afford, how mortgages work, or want to get a pre-approval. Please feel free to contact them or myself if there’s anything we can do for you!
Nicci Brown – Edina Realty Mortgage
Cheryl Stuntebeck – Bell Mortgage
No consideration has been received for these recommendations.
