What a Ride the Last Couple Weeks

Filed under: Market Comentary

If you’ve been paying attention to the news, you know that the financial markets have been going nuts – with big up days and big down days. There have been more down days than up, which creates a bit of uneasiness.

How Mortgage Rates are Affected

As these changes happen in the equity markets, the bond markets are affected as well… and the mortgage rates are benefitting. Interest rates have fallen quite a bit. Things have been jumpy this week, and rates have come up a little. But since the beginning of the year, we’ve seen rates come down dramatically.

Just a reminder: when rates come down by 1%, that equals approximately 10% increase in your buying power for exactly the same payment. Since the beginning of the year, we are seeing those types of changes in interest rates. That means that even if home prices stay the same, you are getting a discount due to the great interest rates.

Discount on Your Home Purchase

I often talk about how the price you pay is matters, but people often overlook the importance of the interest rate. If you are going to have the house for any amount of time, the interest rate is very important. I can help you quantify how it adds up for your unique situation.

I wanted to share the word: yes, there is a lot going on in the financial markets, which understandably creates an uneasy feeling for many people. But from the mortgage perspective, there is a window with low rates – if people are looking to buy or refinance, then it might be a great time to make your move.

All I have to say is: stay calm! Hopefully things will calm down soon. But don’t overlook the benefits of making your real estate move when the interest rates are good. I’m always here to answer your questions if you’d like to learn more about your options.

Franklin Loan Center | NMLS 237653
Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, 4131316
For questions or concerns please email info@franklinlc.com