Here's some information regarding the current rate market:
Although home loan rates are very attractive now, the picture could be quite different as some inflationary factors will likely come to light heading into summer.
Oil prices may be on the rise as we approach the summer driving season, some of the economic stimulus might begin to take hold, corporate cost-cutting measures could start to bear fruit, and, perhaps most importantly, the Fed will no longer be a buyer of mortgage bonds.
These are all ingredients in a recipe that could very easily result in significantly higher interest rates this summer. If you have been thinking about acting on a home loan, this may be the best time.
Homes are on sale, sellers are motivated and interest rates are at historic lows...but things may not stay that way, which means it makes sense to get moving on that home purchase or refinance you've been contemplating.
But if you are among one of the smart individuals who are going ahead and taking advantage of the low home loan rates to be had right now, there are a few things to be aware of.
With interest rates at record lows, lenders have seen a sharp increase in loan applications - just at the time many lenders have cut headcount to save money in a challenging economy. This means that time frames needed for underwriting, approvals and closing have become longer than normal.
Consider loan locks to ensure that your loan file has time to be processed, underwritten, approved and closed in time to protect the rate lock in this volatile climate.
Respond quickly to requests for information or documentation. The faster the file is submitted and approved, the better off you are to keep your rate protected.
Finally, be aware that it may be a smart idea to pay points to gain the best interest rate. Ken has a special program that he can address with you. Using seller paid costs to lower your rate a quarter or half percent can lower your payment by a couple of hundred dollars.
If you would like to check your financial status to see if you qualify for a first time purchase, moving up, buying an investment property or refinacing, call my lender, Ken Allen, Branch Manager with MetLife Home Loans. You can reach him at 425-670-2418 or ken@kenallen.com. Be sure to ask Ken about his rate buy down program.
After a RE/MAX office meeting last week, word out of our Seattle office is that the Seattle market is "heating up", multiple offers are being seen and inventory is being eaten up.
Typically, that activity moves North up to Snohomish County within a couple of months.
While I was showing homes to buyers this past week I noticed an increase in showings as agents were standing in line to show properties I was in.
Once the inventory is diminished we should see the prices increase and sellers will be less willing to negotiate.
The time to act is now before the market takes an upswing.
For ALL your real estate needs, call Karen Schweinfurth 425-308-3669 and visit my web site at www.karensvillas.com