With mortgage rates falling to the lowest they have been in three years, many observers and experts as well as mortgage seekers have been making quite a buzz today. 
Before we take a look at what the rates actually are, please understand that at Palm State Mortgage Company, here in Winter Park, Florida, we are mortgage brokers who customize every loan we make with our client’s individual financial situation in mind.
Therefore we seldom indulge in blog articles that feature generalized statements about the rates. We really view every mortgage seeker’s needs within a framework of their fiscal capabilities.
Mortgage Rates: A Review of Current Lows
Although this is true, sometimes a general commentary is needed to take a look at the big picture. We just want you to keep in mind that the reported rates splashed into headlines all over the financial section of your newspaper might not necessarily apply to your particular case. There are many variables in the home loan process.
The reported mortgage rates are often rather artificial when compared to an individual mortgage seeker’s budget, income and bankbook.
Palm State Mortgage does promise to help you negotiate the best lender and mortgage situation possible for you and your family. All of this being said, let’s take a look at the generalized rates from Thursday of this week in May, 2016, and then we will see what the statistics can teach us.
Mortgage Rates Are Buzzing In the Headlines
Yesterday, Freddie Mac released a weekly survey of lenders and showed the following average rates for some of the most used home loan terms:
30-Year Fixed-rate Mortgages: These agreements averaged 3.57% with an average 0.5 point for the week of May 12, 2016.
Only 1 year ago, the rate came in at an average of 3.85%. “The 30-year fixed is now at a low not seen in three years. The lowest average rate on a 30-year fixed mortgage was 3.31% back in 2012.”
15-year Fixed-rate Mortgages: 15-year fixed rates averaged 2.81% with an average 0.5 point. The same term priced at 3.07% a year ago.
5-year adjustable-rate mortgages priced at 2.78% with an average 0.5 point. “Last year at this time, the same ARM averaged 2.09 %
The Silver Lining and A Few Clouds on Your Silver Lining!
Understand again, at Palm State Mortgage Company, we do not consider a home loan to be a “one size fits all” situation, but you can take away some serious ideas from seeing the above statistics, if you read between the lines.
1. The Silver Lining:
It is a good time to change from being a renter to being a homeowner. The rates will not remain this low for long. Be sure you get locked into your interest rate with the lender who provides you with the best agreement.
2. A Cloud On the Horizon:
Even though you might have more buying power than you did three years ago, there are not as many homes available for you to purchase. This is especially true in certain hot housing market areas in the U.S.
Where you buy a home certainly influences the entire mortgage process.
3. Another Small Cloud on the Horizon:
Likewise, these low mortgage rates are causing lenders are to tighten up credit availability as well as assume less risk. For example you might see the average lender’s requirement of a FICO score go up, as the rates go down.
At Bankrate, we found a nice summary, “While rates on mortgages fluctuate daily, they are currently around historic lows.”
We agree that “Prospective home buyers and those looking to refinance will find it’s a great time to lock in a rate.” We appreciate their caveat, “Be sure to shop around for the best mortgage rates,”–because that is what we do for our clients here at Palm State Mortgage.
4. Where Are Mortgage Rates Headed?
At Bankrate’s Rate Trend Index, 9% of the experts predict that mortgage rates will increase over the next week. 18% of the experts believe think rates will fall, and 73% think mortgage rates will remain the same.
We can only say, “Wait and see.”
Whatever is said in the financial reports, we want you to know we work with a wide variety of lenders in the mortgage business.
Because Palm State Mortgage Company works with more of them than you might find or imagine, we can give you better available options for your home loan situation.
Palm State is your personal shopper for finding the best individualized fit between lenders and mortgage seekers. That must be the reason a client recently referred to Palm State Mortgage Company as the “mortgage whisperer.”
