Unless you were on the space station, orbiting Earth, you already know that one week ago Ben Bernanke sparked a significant jump in mortgage interest rates with his Fed comments. In some cases, they increased by one half a point over night…that’s HUGE, as Billy Fucillo (our local mega-car dealer in SWFL) would say. Rates continue to climb and fall back, even on an intra-day basis.
There is some speculation that rates may calm down and even drop some, as the market adjusts from Ben’s comments about reducing the Fed’s volume of bond market purchases over the next eighteen months, if the economy continues to improve.
That leaves buyers and investors with a challenging decision – should you move ahead with that mortgage now or wait for a possible pull back in the rates? Here’s a suggestion…if the deal makes sense with today’s rates and terms, then act now. Do not wait for a marginal rate improvement that may not come or may cause you to miss the deal that is on the table now.
Rates are still very attractive vs. historical averages and there are many mortgage features in today’s market that are truly beneficial for the buyer. My company even has an escrow waiver program that can give you increased flexibility with your monthly payment and cash flow. You can also take advantage of our loan product that can go as high as 97% LTV with no mortgage insurance…now that really is HUGE!
Yes, commercial rates are not immune to increases, either, as they tend to follow Prime, LIBOR and other popular indices. So keep that in mind.
Gary King, MBA
Residential & Commercial RE Advisor
Real Estate Solutions of SWFL, LLC
Innovative Mortgage, LLC
Residential & Commercial Mortgages
mobile 239-989-2288 (any time)