Karl's Blog Report

If you are thinking of buying a home, now is the time, with plenty of choices and low rates, now is the time to buy. Especially if you are a first time home buyer.  They are deals to be gotten in this current real estate market. Rates are still low, but have crept up a bit from 5.875% last week to 6.25% this week on a 30 year mortgage. Why? you ask. Well because mortgage bonds have been beating up this week. With Oil prices rising and inflation looming around the corner, investors have pulled their money out of mortgage bonds and back into the stock market. When mortgage bonds go down, the interest rates on home loans go up! So if you are buying a home and have some time before you close I would suggest to wait and see if buys make a come back. Currently, mortgage bonds, the (Fannie Mae 5.5% yr note) is down 34 basis points. Yesterday it had dropped about 40 basis points so the 5.5% year ntoe is at 99.65bps. When this number is around 100.55 then we will see 5.875% come back into play. So remember when bonds are up, mortgage rates are down.

Karl J. Holub
Sr. Mortgage Consultant