We're heading into the summer season in San Luis Obispo, and people are wondering how interest rates will affect the marketplace. The Federal Reserve meets on occasion and determines the federal funds rate - which is not necessarily what mortgage rates are. The Fed are having a meeting soon, but I'm guessing we will not see any federal fund rate hikes, but if they do, it probably won't affect mortgage rates. This is what I'm being told, and it's what I believe to be true.
I don't think rates will go up. The last time we had a raise was in December, and mortgage rates are actually lower than they were in December. I called up a lender today to ask about rates (because they fluctuate) and they usually calculate any coming rate increases into mortgage rates. So I just wanted to share with you, because I think it's amazing, if you have good credit, you can get a conventional loan for around $417,000 and a standard 20% down, you're looking at an interest rate of about 3.625% for a 30-year mortgage. That's unbelievable!
So what does this tell us? It tells us that rates are amazing, I don't see any change in the market, and here in June, it's already better than I could've imagined. I think the market will stay this vibrant. You cannot beat the cheap cost of money for a 30-year loan.
If you have any questions, please feel free to reach out to us today!