Sunday, March 17, 2013

Mortgage Rates Still At Historic Lows - Ignore the Headlines

30 Year Fixed Mortgages at 3.63%.  15 year at 2.79%.  5 year ARM  2.61%

To read the headlines, one might be persuaded that the opportunity to take advantage of amazingly low mortgage interest rates has passed you by.  If you read a bit past the headlines you can see by the above chart that interest rates are still being kept in check by the Fed.  And, most pundits seem to take the Fed at its word that within a narrow range, mortgage rates will continue at these crazy levels.  

Make no mistake.  Should the Fed ever stop artificially forcing these rates down, there will be a substantial move up.  But no one knows the mind of the Federal Reserve chairman or the board.  Thus we have no idea when they will stop their asset purchases.  

Let's look at these rates in the context of a much longer historic view, in case any of have forgotten the possible range of mortgage interest rates over time.  How about during the 80's.  Would you like to venture a guess before looking down the page to see how far things can swing.  

 Mortgage Interest Rates in the '80's Were Forced Up by the Fed to Stop Inflation 



You Might Be Surprised at How High Mortgage Interest Rates Were in the '90's

 Some might believe the historic revisionism of how great things were for the economy in the '90's.  But in fact, interest rates remained quite high.  Even in 1999, your good credit would have gotten you a 6.79 rate.

Compared to the '90's Last Decades Mortgage Interest Rates Were Very Attractive

We remember the go go days of the last decade and interest rates seemed really low.  They were ranging from around 5% to near 6.5%.  Contrasted with today's 3.63, you begin to see why we are not impressed with the headlines talking about interest rates going up.  


Get Refinanced Today!  Buy Your Dream Home Today!  Get Investment Property Now!

The rates are crazy low and you do have time.  But every day you wait, home prices are heading higher.  In the current environment with very low inventories and crazy low interest rates, the cost of the housing stock has nowhere to go but up.  Call us today and we will help you get the lowest rates available.  Call Bill Rayman at 310-295-2900 ext 113

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