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The first week of the New Year brought good news for those people looking to close on a home purchase within the near future. As reported in the Star Tribune, long term mortgage rates slipped lower, with the 30-year fixed-rate at 3.95 (down from 3.99 a week ago and 4.20 a year ago) and the 15-year rate down to 3.38 (from 3.44 last week). While 4-6 basis point changes don’t make a huge impact on one’s monthly mortgage payment, this continued downward trajectory is a welcome surprise for many. It’s unexpected due to the Fed’s move in its last meeting of 2017 to increase the Fed’s interest rate for the third time that year. These long term mortgage rates, however, are actually more reactive to changes in the 10 Year Treasury Bond yield than the Fed’s rate. And it turns out that the 10 Yr Bond interest rate also fell.

 

It’s easy for people to get stressed when it comes to locking in a rate or wait and see what the rates might do. At this point in our economy, your best bet is probably to lock it in. But, perhaps that’s a step in the process that you’ve not yet reached! It might be the case that as part of a 2018 planning/goal-setting/resolution-brainstorming session, you decided this is the year to start exploring the possibility of homeownership. If that’s the case – and you’ve exhausted your Zillow searches – give me a call or shoot me a message. Let’s figure out a realistic timeline, and we’ll get you in contact with our mortgage guy. He can talk you through the ins and outs of locking-in, down payments, etc. We want to help you make that goal a reality. And it’ll probably be more enjoyable with Serdar + Partners walking you through, just saying.    

 

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