If you are thinking of buying a home or refinancing your mortgage to take advantage of today’s amazingly low rates, make sure to check my blog every week end for my weekly Mortgage Market Review courtesy of Terra Mortgage. And don’t hesitate to give me a call with any question or for a referral to Marin’s top mortgage professionals.
The Fed met this week and confirmed they will stay the QE3 path for now. And this morning the 3rd Quarter GDP estimate was released and it showed U.S. economic growth picked up at a 2% annual rate (accelerating from Q2’s 1.3%). While this is certainly positive news, growth still falls shy of the 2.5% needed for several quarters to put a dent into the jobless rate. And at the end of the week interest rates continue to hover just above the record lows of a couple weeks ago.
CURRENT INTEREST RATES | OCTOBER 26, 2012
($200,000 – $417,000) 0 POINTS
• 30 Year Fixed: 3.375% (3.47% APR)
• 5/1 ARM: 2.250% (2.35% APR)
($625,501 – $2,000,000) 0 POINTS
• 30 Year Fixed: 3.875% (3.97% APR)
• 5/1 ARM: 2.875% (2.96% APR)
|CONFORMING (HIGH-BALANCE) RATES
($417,001 – $625,500 cap by county) 0 POINTS
• 30 Year Fixed: 3.750% (3.82% APR)
• 5/1 ARM: 2.875% (2.96% APR)
Rates are FLAT compared to last week.
Rates are FLAT compared to last month.
Rates are DOWN compared to one year ago
THE TIME TO “BUY OR REFI” IS NOW!
MBA Economist predicts rates will rise to 4.4% in 2013
The MBA (Mortgage Banking Association) announced their annual rate forecast and they see interest rates rising to 3.9% in the first quarter of 2013 and eventually rising to 4.4% by the fourth quarter of next year.
Of course this is only a prediction and the MBA has been wrong before; Last year the MBA predicted the 30-year fixed-rate mortgage would average 4.4% for 2012. Instead, rates plummeted to an all-time record low of 3.8%, spurring a flurry of purchase and refinance activity.
However, if you are a potential Buyer, Seller, or Home Owner considering a refinance, one has to ask, what are you waiting for?
On September 13th the Federal Reserve announced a historic third round of easing (“QE3”) during which the Fed will purchase Mortgage Backed Bonds and pump an unprecedented $80 Billion Dollars a month into the U.S. economy through the end of 2012 and an additional $40Billion/mo. thereafter (indefinitely) until the economy shows signs of a recovery. As a result, interest rates immediately dropped to all time lows.
The goal of the Fed’s QE3 plan is to encourage lending by lowering interest rates, particularly for mortgages. Lower interest rates have three effects. First, they spur home sales. Second, they encourage refinancing which puts more money into consumers pockets. And third, they indirectly persuade investors to move money into the stock market which stimulates employment and consumer spending.
And so far it appears the Fed’s efforts were not misplaced. Signs of a housing recovery have been evident in the recent pick-ups in home prices, home sales, and new construction. Foreclosures are also down. Some economists believe this emerging recovery will produce slow and modest improvements in home prices, construction and jobs, but a growing contingent believe a rebound will be much stronger as pent-up demand for home purchases drives building and in-turn home prices higher.
Today interest rates are extraordinarily low and home affordability is at an all-time high. It is important to remember The Fed is charged with fighting inflation and as the economy recovers and begins to pick-up steam, inflation will return, and the Fed will be forced to raise interest rates in order to fight it. Therefore we are encouraging our clients to take advantage and lock in today’s interest rates which at some point in the future will seem absurdly low by comparison.
This article was reprinted courtesy of Gina Kemsley – Copyright © 2012 Gina Kemsley, Terra Mortgage Banking, All rights reserved.
Gina Kemsley – Senior Vice President – Loan Consultant, Terra Mortgage Banking
Office: (415) 464-3144 – Cell: (415) 828-0218 – Email: email@example.com – Website: www.terramortgagebanking.com/loan-officers/gina-kemsley
About the author: The above Real Estate information on Marin County Real Estate was provided by Sylvie Zolezzi. I can be reached via email at Sylvie@YourPieceOfMarin.com or by phone/text at 415.505.4789. I am an award winning Realtor specializing in luxury residential real estate in beautiful Marin County, just north of the Golden Gate Bridge.
My goal is to provide you with the best home buying or selling experience possible by combining my business and financial experience with meticulous attention to detail and a warm, personable and caring approach to meeting your needs. I have an excellent track record as a successful, results-oriented negotiator and effective communicator. My analytical skills and understanding of current market conditions, along with my ability to utilize a broad range of cutting edge technological and innovative marketing resources, make me an invaluable real estate resource.
I am a long term Marin County resident and home owner. I strongly believe our quality of life is extraordinary and practically unmatched. I love our community, quaint towns and vast open space and never tire of their breathtaking beauty. I know the neighborhoods, the schools, the amenities; I know where you want to live. I know and love Marin County!
I specialize in Luxury Homes in the following towns in Marin County: Sausalito, Tiburon, Belvedere, Mill Valley, Corte Madera, Larkspur, Greenbrae, Kentfield, Ross, San Anselmo, San Rafael, Fairfax, and Novato.