Residential Mortgage Where are rates going?

The question we hear every day is “where are mortgage rates heading in the near future….?” It’s a good question and it really depends upon who you ask. I’ve heard economists say the jump in rates we saw at the end of 2016 was just the beginning of a slow trend upwards to more historically “normal” rates. Another economist has said we could very well slip back to where we were this past summer to more historically low rates. Which camp are you in?

Regardless of your outlook, one thing is for certain, we are still in a historically very low rate environment. For example:

Last 42 years historical median rates for 30 year fixed mortgages:

8.15% over the past 42 years

7.45% over the past 30 years

6.52% over the past 20 years

5.72% over the past 10 years

We cannot predict exactly where rates will go, but we can make sure our Mortgage Loan Officers, our back-office departments, and systems are working as efficiently as possible to deal with the workload of a fluctuating rate environment. Economic based rate volatility, normal seasonality, and throw in a little Dodd-Frank for good measure and any of these can strain a system. The Mortgage Department has worked hard to position ourselves to handle this by cross-training, seasonal help, and continued system/workflow efficiencies.

Easter Egg!!

Too often you only hear of the “bad” experiences. I’m proud to say with just under 1,200 closings in 2016 including HELOC’s, in-house deals, and Secondary market mortgages, we’ve not had many “bad” ones. We appreciate everyone’s help, support, and hard work.

I wouldn’t be doing my job if I didn’t remind you….If you’ve not refinanced it still is a very good time to do so? If your neighbors, friends at church, children, etc. say they think rates have gone too high for them to consider building, buying, or refinancing their home you might want to remind them of the historical medians….

Thank you,

Mark Miles, Director of Mortgage Operations

Credits:

Created with images by MarkMoz12 - "House/Home Inspection" • oatsy40 - "House" • Spixey - "Gate House" • somewhereintheworldtoday - "Easter eggs" • TeroVesalainen - "handshake hand give" • nan palmero - "Davis and Kara Buy a House" • jill111 - "country porch porch chairs patio"

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