First, an Update on Rates:
30 year at 4.375%…. 250,000 loan is $1248
15 Year at 3.375%…..250,000 loan is $1771
Today’s Rates are above the Spring Time lows…..but they are almost a half point better than they were 2 months ago.
Let’s Look Ahead!
The Real Estate Market has been moderately active. The $150,000-$300,000 market has been generally good….. home prices have stabilized and a bit up, but they remain “very reachable” for buyers who are new to the market, especially given the low rate stability of the Mortgage Market.
The financing outlook points toward some tightening to underwriting standards by Conventional Lenders. This will be offset by an expansion of Non-Conventional Lenders and programs entering the Market. Economist are virtually Unanimous in predicting rate rises of .75% t0 1.5% over the intermediate economic cycle over the next 12-30 months. These rate increases are based on an end to “Fed Easing Policies” toward true Market Rates on Long Term Capital.
Possible Rate Increases are assumed to be moderate and gradual…. the projection of Mortgage Rates to the 5%-6% range would seem to reflect a normalization to market that remains at the low end of the historical rate cycle. A moderate rise is thought to soften the impact on the Real Estate Valuations while retaining strong affordability for Real Estate Buyers.
Fast. Smart. Kind.