William Raveis Mortgage Banker Says “Mortgage Rates Remain At All Time Lows!”
I am talking with Jorge Rivera; Executive Mortgage Banker with William Raveis Mortgage, Jorge Rivera says “Mortgage interest rates remain at all time lows!” Let’s get a closer look with Jorge here at William Raveis Real Estate in Darien, Connecticut.
Jorge, what currently are the residential mortgage rates doing and how does it compare historically?
Relative to the 2010 market, mortgage interest rates have been on a steady increase since November 5, 2010, but take a look at this historical chart. The 30 year fixed rate is the near the lowest it has been in over 40 years. When coupled with the fact that home prices are near their lows of the last 6 years or so, buying power is fierce!
Why are rates on the rise, can you break it down for us?
Mortgage interest rates have a foundation in an investment vehicle known as a Mortgage-Backed Security (MBS). In an effort to spur the economy, the government was buying these securities last year by the ton. Because there was a lot of buying, the price of the security increased (like any supply and demand scenario.) High-priced mortgage-backed securities equal low interest rates. So the Federal government’s buying created an environment of artificially low interest rates. The government stopped this buying program at the end of 2010.
Jorge, economically how has the rates been affected? What seems to be the current trends for investors?
Wall Street has also been pleased by all of the economic reporting since the end of 2010. The unemployment rate, although high, appears to be dropping. Earnings reports from companies seem to be increasing and consumer sentiment about the future seems to be improving. Investors have to decide where to put their money. In times of economic uncertainty, investors like a safe harbor, which is why they were taking money out of stocks and investing in bonds and MBS over the past few years. Now the inverse is happening and money has been moved back into stocks. As a result of all of the selling of MBS, the price is coming down and rates are going up. But when looking at the historical chart, it is easy to see that mortgage rates are still at all time lows! The time to buy is now! Arguably – never better!
You hear that applying for a mortgage is harder than ever, is this so?
Contrary to popular belief, qualifying for mortgages has not changed much over the past few years. Gone are the days when a person can apply without any documentation or with very low credit scores, but those programs failed by design. The conventional and FHA qualification standards, based on my 15 years of experience, are reasonable and quite attainable for the average person.
Thank you Jorge for all that information.
Please contact us with any questions! We look forward to working for you and helping you take advantage of this incredible time!
Cell: (203) 913-1633
David Popoff is a lifetime resident of lower Fairfield County, Connecticut along with over thirty years of local work experience. He is a license Realtor in Connecticut with William Raveis Real Estate and centrally located out of Darien office.
- Member of the Connecticut Association of Realtors, CAR.
- Member of the National Association of Realtors, NAR.
- Member of the Connecticut chapter of the US Green Build Council (CTGBC).
- Associate member of the HBRA-Fairfield County, Ct. .
- Accredited LEED GA and CGP-NAHB.
- Contact David Popoff for all your real estate needs in Darien, New Canaan, Rowayton and other parts of Connecticut.
~ David A. Popoff ~ Licensed Connecticut Realtor ~ LEED GA accredited ~ Cell (203) 228-0646 ~