The 10 Year is Dropping! But How Is This Impacting Mortgage Rates.

Written by Michael A. Foote, CMB on . Posted in Uncategorized

Freddie Mac has released a survey on mortgage rates. The agency’s weekly survey showed that the average rate on a 30-year, fixed-rate mortgage was 3.66 percent, down from 3.73 percent last week and 4.41 percent a year ago. But what does that really mean? Well for every $1,000 you borrow the price goes from $5.01 per thousand to $4.62 per thousand. Well, for a $450,000 loan amount you are now going to ay $2078.92  per month versus $2256.08 based on last years rates. Almost a couple hundred dollars of savings. And that is just a vanilla loan.

Rates are continuing to adjust both ways we had two price increases yesterday, and then got a little better today. The point being, to trust your loan advisor and make sure the savings make sense for you today. Many lenders focus on, “Hey, we can close this in 5 minutes!”. Obviously that is an exaggeration, but the point is sometimes, taking a time-out and playing the market may hold some advantage. Sometimes however, waiting can cost you to lose a lower rates. Don’t be greedy. Sometimes you just need to lock and enjoy the improvement in rate, rather than waiting for the floor. Even the stick picker will tell you that you can never call a bottom. Nor can you call a top. Be wise and lock em’ if you got em’

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