While there’s no crystal ball for mortgage rates, it’s important to understand that mortgage rates are based on how investors are trading stocks, bonds, and Mortgage Backed Securities.
The Campbell Home Team are the type of Mortgage Bankers that take particular interest in understanding how the market is playing an impact on the interest rates, so we’re able to provide the best mortgage interest rate advice for home buyers in the Dallas Fort Worth area of North Texas. Our experience helps us guide home buyers through the process of understanding when the market is perfect time to lock in under current conditions based on their plans and individual situation.
Current mortgage rates are still at very low levels compared to where they’ve been over the last 12 months. In fact, rates have only been better than they are today (June 16th 2014) for a few weeks out of the entire last year. Some experts are expecting rates have a strong probability of improving over the next couple months based on economic data and technical trading indicators.
Here are some facts about interest rates to keep in mind:
Rates really don’t change.
It’s the cost of the rate that changes from day to day (technically, it can change throughout the day). Comparing rates on different days from different lenders is comparing apples and oranges.
Getting the Lowest Rate doesn’t always meet Getting the Lowest Payment
It’s important to understand the various ways of structuring a mortgage loan. Call us today, and we’ll schedule a time to walk you through process and show you all options and ensure you understand the pro’s and con’s of each option.
Historical June Average Interest Rates:
- 2013 = 4.46%
- 2008 = 6.32%
- 2003 = 5.23%
- 1998 = 7%
- 1993 = 7.42%
- 1988 = 10.46%
- 1983 = 12.87%
Current Rates continue to give home buyers more buying power than any time in history.
See below how much loan you can get for $1000 per month. $1000 today gives you more than twice the buying power than it did 30 years ago.
- 2013 – $1000 per month is a $198,000 mortgage
- 2003 – $1000 per month is a $181,000 mortgage
- 1993 – $1000 per month is a $144,000 mortgage
- 1983 – $1000 per month is a $91,000 mortgage
Rates can be volatile and change very quickly.
Interest Rates often rise like a rocket, but fall like a feather! The chart below illustrates how the market changes from day to day. Please note: Since this is showing the cost of the mortgage backed security, it’s opposite of rate. So, in other words, as the chart goes down, the rate (or cost of the rate) goes up.
Below is a snapshot after another poor day in the mortgage backed security markets.