Up, Down, Up, Down... What's Up (or Down!) with Interest Rates?

Thanks in part to recent US Treasury purchases of agency mortgage securities, 30 year fixed rate conventional mortgage rates seem to have leveled out in the 5-6% range. As always, they are subject to change at any time based on the usual market forces. Will they go down further? Will they start to creep up? They'll probably do a little of both! We'll only know in hindsight. What is certain is where rates are today and that average annual rates have been as high as 18% and rarely even close to where they are today. As we're now in unchartered territory, waiting for further improvement may not be prudent.

Just like insurance, locking in a rate when it makes economic sense protects today's benefits. You can always take advantage of a future lower rate, but you can never go back and lock today's rate once tomorrow has arrived. You might also consider the "toll booth at rush hour" effect that will exist as demand peaks when rates make their inevitable and usually swift turn back up. This always creates lost opportunity for those that tried to "time" the bottom.

Before you begin a home search, you'll want to speak with a mortgage planner. They can help you determine the type of loan that is best for your situation and what to expect in terms of interest rates, down payment amount and mortgage insurance premiums. We work closely with some of the best mortgage planners in the business and would be happy to give you a referral!

The S&B Real Estate Team assists people in buying and selling real estate throughout Southwest Washington. We are proud members of Keller Williams Realty – Premier Partners in downtown Vancouver. Our local expertise covers: Vancouver, Battle Ground, Camas, Washougal, Brush Prairie, Hockinson, Ridgefield, Woodland and La Center. If you or someone you know is considering living or investing in Clark County, please contact us. Jamie Carroll can be reached at 360-609-6775. Steve Borwieck can be reached at 360-241-7305. Or drop us a note on the “Contact Us” page at www.sbreteam.com. We are here to help!