September 11th, 2013 5:47 AM by Joan Rusco
Mortgage interest rates are up, but historically speaking they are still very low! This week you are likely to hear about a rise in mortgage interest rates. Don't be discouraged! You still have time to capture a rate that will save you money. That's why our clients consider us the NUMBER ONE VA LENDER in Minnesota. We've saved so many Veterans and active duty Military so much money over the past several years. Here's what's happening now in the world of mortgage interest rates: change!
There are many factors that affect the rate you will pay for a home loan. Top of the list is what the Federal Reserve does in the bond market. In recent years the ‘FED’ has been buying mortgage backed securities. Because of their never ending stream of money, their purchasing power is huge. Their buying of these securities has kept rates low. Now they are suggesting they're going to taper off those purchase. The bond market is reacting and pushing rates higher. We've seen mortgage rates climb from the 3%+ rate to well over 4%. It's important that as you consider a home purchase or refinance using your VA benefits that you keep this in perspective: RATES ARE STILL VERY, VERY LOW.
We remember purchasing a home back in the 1980's with an interest rate that was in the double digits (and our credit was great)! We had a neighbor who had lived in her house for decades and was paying 6% for her loan. We thought at the time "those days are long gone!” ONLY 6%-WOW! Then came this horrid recession and rates dropped like a rock. And here we are today well below that 6% rate that we thought we'd never see again.
The moral of the story is that yes, rates have inched up recently but they are still very, very low. Take advantage of the benefits you've earned serving our great country in the military and talk to us about a VA loan to purchase or refinance your home. We believe the VA home loan is the very best loan available in the market today. Call us! We'd be happy to tell you why!