Current Mortgage Rates at all time low
Current Home Mortgage rates are still at an all time low. Mortgage rates have been steadily going up since the new year and many borrowers are waiting for that big correction. Current mortgage rates for FHA mortgage loans are going for 3.25% and conventional mortgage rates are currently going for 3.75%. Jumbo mortgage rates are around the 4% mark.
Current Mortgage Rates on Second Homes
Current home mortgage rates for second homes are the same as owner occupied mortgage rates depending on the mortgage borrower;s credit profile and income as well as the borrower’s debt to income ratio. Condo Hotel mortgage rates start at 4.75% and goes up to 5.25% for investment condotels. Current home mortgage rates for investment properties start at 4.125% and can go up to 4.5% depending on the credit profile of the mortgage borrower. Credit profile includes the credit scores of the mortgage loan borrower, income, and debt to income ratios. A home mortgage loan borrower can get most of their closing costs covered either by increasing the loan amount or by accepting a higher rate.
Where are mortgage rates headed?
Home Mortgage rates started to creep up starting last November and starting the new year, mortgage rates have consistently have been going up week after week. When the stock market goes up, mortgage interest rates go up. The Dow Jones has been in positive territory week after week. Historically, the stock market has always done very well in January. Many analysts predict a major correction and so do investors. Those mortgage loan borrowers who have not locked their mortgage rates are now paying the price. Many of my clients who have a clear to close are delaying their closing hoping that there will be a market correction. Borrowers who are refinancing can afford to speculate in waiting for mortgage rates to drop but home buyers do not have their luxury unless they want to delay their purchase closing.
Mortgage Rates and Economic News
Nobody has a crystal ball and can predict what the credit markets will do. Interest rates have gone up so rapidly this year that many, including myself, feel that there will be a major market correction. However, interest rates have been spiking up week after week. For those mortgage loan borrowers who barely qualified for a mortgage because of tight debt to income ratio, I strongly recommend that they lock their rates. There is a strong possibility that mortgage rates can drop but there is also the probability that mortgage rates will continue to climb.
Gustan Cho, NMLS ID 873293