Home Loans California & Arizona

Mortgage interest rates, where are they headed?

January 5th, 2013 12:06 PM by Nathan Rufty

Where are mortgage interest rates headed in 2013 for California home buyers? Don't we all wish we had a crystal ball to look in the future to determine whether to purchase a home now or later.

If you read or listen to the industry experts, they all agree mortgage interest rates will rise in the coming months. But they can no more predict that or the lottery numbers. We are a global economy and what happens aboard will effect our mortgage rates. But if we remain on our steady economic growth we will see rates increase over time. Which means what is being offered today will not be there come the summer, when home activity in California heats up (yes I am punnig the phrase).

My stand on the interest rate is lock as quick as you can, because the rate will be fixed on a 15, 20 or 30 year (life of the loan, no adjustable here), but the values will go up and down, nothing we can do about that. But the one constant is your rate will be fixed and that is one thing you will not have to worry about.

I have been part of the lending industry since 1988 and the average 30 year rate back then was 12% and home owners did not gamble with that because that was a great rate from years earlier when they were at 18%. Granted we have a different environment today. But 3.25% why gamble with that, if you are waiting for rates to drop to 2%, I have beach front property in Nebraska for you to look at.

When this economy turns around and it will, then you will see rates at the 6% range where they were in 2005 and 2006. That is when we had such a crazy market and we can all remember that was the lowest rates in many many years and the home values where just out reach for 90% of the homebuyers today. So with lower home values and lower interest rates that we have today in California, then pounce and pounce hard on a home.

I am offering my services to assist with your home loan needs, we are a direct mortgage lender properly licensed in the state of California. Lets get started at 909-503-5600.

Posted in:General
Posted by Nathan Rufty on January 5th, 2013 12:06 PM

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