The Brotherhood of Politics and the Economy Drop Mortgage Rates
by Amy Lignor
The political arena and the financial arena always walk hand-in-hand. As it is with the healthcare field being up in the air right now and people rushing to their doctors in order to get their “free” health services before they are, perhaps, all taken away again – the real estate world is seeing a rush to buy attitude because of lower mortgage rates.
When it comes to the 30-year mortgage rate, numbers fell 11 basis points to 3.97 percent, dropping below the 4 percent level for the first time since November of 2016. This comes from the combination of weak economic data and the ever-growing international tensions between Trump and others that are driving investors to jump aboard the much safer world of Treasury securities and taking their money out of the “risky” arenas. With this shift in investment, based on politics, mortgage rates have won – with rates moving lower than they have in a good long time. (It was more than a year ago that the 30-year fixed-rate mortgage (FRM) averaged only 3.59 percent.) When it comes to the 15-year FRM, the average is 3.23 percent. (A year ago, the 15-year FRM averaged 2.85 percent.)
With these numbers, thus far, 2017 has made home ownership far more attainable for families out there.
Now, this is an extremely difficult ‘world’ to view, seeing as that all of the so-called ‘experts’ out there across America have far different opinions on where 2017 mortgage rates could eventually go. They talk consistently about Trump’s decisions eventually forcing mortgage rates to turn and go up throughout the latter part of 2017; some even stating that by the end of the year – worst-case scenario – 30-year FMR’s could knock on the door of 5 percent.
So…who can you believe? It is a fact that with each new political day, mortgage rates will remain unbalanced because of all these new policies and problems America is experiencing with the international community. But if searching for a home, what you need to do before diving in is to learn about the mortgage rates in your state. From there, you must truly use that Internet search to find the best lender with the best rates that will actually care about you and your family coming out ahead. This process is necessary for those who are purchasing for the first time or even refinancing in order to do renovations that will better the home and increase re-sale value.
After comparing rates, the next step in the process should be to polish your credit score. Make sure to keep your credit in tip-top shape. The higher your score the better your interest rate and the more loan choices you’ll have to choose from.
Then, attempt to increase your down payment. Paying more up front will also help you to grab that better interest rate and save you money as you pay down your loan. Many lenders out there will charge you higher costs when it comes to mortgage insurance if you come in with a lower down payment.
Last, but not least, before diving into the purchase of a house, take more than a few minutes to consider how long you’ll actually be living there. If you already know that you will sell in a short amount of time, put your focus on the adjustable-rate mortgages. This way, you can take advantage of the lower initial interest rates of the ARM’s and then sell before the rates can reset. If ARM’s seem too risky, there are also the shorter-term fixed rate mortgages that will cause larger monthly payments, but bring a much lower interest rate at the same time. With this path, you’ll pay less over the life of the loan and build equity much faster.
In the end, the brotherhood of politics and the economy in 2017 will cause the mortgage rates to waver. It all depends on what the ‘men in charge’ think of next.
Source: Baret News