Should We Get A Mortgage Now Or Wait for Interest Rates to Fall?

Interest rates on the 30-year fixed-rate mortgage change all the time, so today's rate probably isn't the same as last month's or next month's - in fact, it isn't.

If you've found the home you want, you might as well take the plunge. On January 3, 2014, the average interest rate for a 30-year fixed-rate mortgage was 4.63 percent nationwide. By October 17, the rate fell to 4.03 percent and remained there for a week or more. It was the lowest level since June 2013 according to the mortgage-information website HSH.com.  Demand for home loans surged, but the increase was driven by homeowners seeking to refinance existing mortgages.  Today’s purchase rates are even lower.
Here's what's behind the lower home loan rates:
Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond on which home loan rates are based.

When you see these Bond prices moving higher, it means home loan rates are improving—and when they are moving lower, home loan rates are getting worse.

To go one step further—a red "candle" means that MBS worsened during the day, while a green "candle" means MBS improved during the day. Depending on how dramatic the changes were on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.

As you can see in the chart below, Mortgage Bonds have been trending higher. Home loan rates remain near record lows

Chart: Fannie Mae 3.5% Mortgage Bond (Friday January 9, 2015)



When interest rates drop, here's how to take advantage of them: First, figure out what the best rates are in your area. The gap between the lowest and the highest rate a mortgage applicant is offered averages about 0.30 percentage points, according to mortgage lenders. On a $400,000, 30-year fixed-interest rate loan at 4.03 percent, borrowers will pay $145,000 in interest over the first 10 years of the loan and $289,969 in interest over the life of the loan. Calculating: With a 3.73 percent interest rate, borrowers will pay $11,464 less in the first 10 years and $24,717 less over 30 years. Following the $400,000 example, a person with a FICO score higher than 740 on a scale that ranges from 300 to 850, who is paying 20 percent down, could get a mortgage at 3.75 percent interest from an online lender or 4.07 percent from local lenders. Some banks charge less if you have a savings account or brokerage account with them. Once you find a rate that appeals to you, figure out how much you'll pay per month and whether that amount is manageable.

For more mortgage info, please contact me. I work with different in-house lenders who can help you become (pre) approved and ready to move.  858-603-7879 OR  robert@sandiego-ca-homes.com
 
www.rmsandiegohomes.listingbook.com / www.sandiego-ca-homes.com


BR/
Robert Moore
 

 

 

Hillcrest Living

Considered San Diego's first suburb, Hillcrest is two miles north of downtown San Diego, home to approx. 36,000 residents and brimming with trendy shops and cafes. Restaurants of almost every ethnic specialty are located here.

2007 marked the neighborhood's centennial, 100 years after William Wesley Whitson purchased the 40 acres north of University Ave to Lewis Street (between First and Sixth Ave) in 1906 for $115,000 that were to become today's Hillcrest.

Known for its "tolerance and acceptance, Hillcrest has a high population density compared to many other neighborhoods in San Diego, and it has a large and active lesbian, gay, bisexual and transgender community.
Hillcrest is part of the Uptown community planning area, which consists of the neighborhoods of Mission Hills, Hillcrest, Bankers Hill, Park West, and University Heights.

The older neighborhood has undergone gentrification, which in recent years, has made it appealing to people seeking a more central urban setting without being in the center of the downtown. Many Hillcrest streets are lined with trees and homes of different architectural types. There are Craftsman homes and Mid-century modern apartment buildings. Zoning is mixed, so you'll find single-family residences, apartment communities, and other multi-family dwelling types all on one street.

The neighborhood is bound by Mission Hills to the northwest, Bankers Hill and Balboa Park to the south, University Heights to the north, and North Park to the east. A large ridge overlooking San Diego Bay borders the neighborhood to the west.

Hillcrest loves to celebrate, each weekend, the local cafes, restaurants and bars fill up for fun and entertainment. Hillcrest "CityFest" is an annual street festival which features food, live entertainment, a beer garden and street vendors. Other regular events in Hillcrest include a weekly farmers market on the grounds of the local Department of Motor Vehicles, a Book Fair and Mardi Gras.

San Diego Pride is an annual celebration each July for the lesbian, gay, bisexual and transgender (LGBT) community. It features the Pride Parade on a Saturday morning, preceded by the Hillcrest Block Party on Friday night and followed by a two-day festival in Balboa Park. It is sponsored by San Diego LGBT Pride and is considered to be the largest civic event in the city of San Diego. The large rainbow flag approved in May 2012 was erected in time for the 2012 Pride Festival.

The Hillcrest Farmers Market currently consists of 175 vendors offering a wide variety of locally grown in-season fruit, produce, gifts, arts and crafts, and flowers. On any given Sunday we have about 175 of our vendors. Many of the local farmers participating in the market grow their produce organically or with no pesticides. The market also hosts a large variety of prepared food and hot food items with an emphasis on international cuisine. Additionally, each week, there are a large number of arts and crafts vendors participating, as well as weekly entertainment performed by Shawn Rohlf and the 7th Day Buskers, a local folk band (additional bands play weekly, check out the heart of the market to see who’s playing).

Hillcrest offers residential neighborhoods with great walkability to shopping, entertainment, as well as public transportation. Its centrality to freeways and downtown make for practical easy-access living.
For more information on Hillcrest and other Uptown neighborhoods, call me at 858-603-7879. www.sandiego-ca-homes.com
BR/
RM