We talked with team member and Certified Mortgage Planner Chris Simms on where rates are and how buyers are being affected. With such low rates he is extremely busy refinancing clients but he took a minute to tell us this:
According averages 5ates are sitting at 5% - 5.125% for a 30 day lock on a 30 year fixed. Assuming excellent credit and low loan to value. Rates are still at 4.875% and 4.7% for 15 years but we are seeing huge differences on credit scores and loan to values. For example one client may have a $240K loan on $315K purchase with a great credit score and his rate is at 4.875%. Where as another individual on a loan of $250K on a purchase of $500 is at 4.75%. The break appears to be at 200k loan amounts with 60% or less loan to value.
Market wise the Fed finished up its regular two day meeting determining to keep interest rates low. They plan to continue investing in Mortgage Backed Securities (MBS) and to invest in 10 year Treasuries (10 year notes, 2 year notes etc.). This is good news. This means they are going to do whatever it takes to keep rates down. If jobs get in order we will have a great housing market.
Purchases are picking up. Let your friends and family know how cheap rates are. It's a great time to consider buying.
If you have questions for Chris he can be reached at 314-229-4242 or via e-mail at csimms@pulaskibankstl.com