Posts Tagged: ‘mortage bonds’

Good Economy is Bad For Mortgage Rates

January 30, 2018 Posted by Andre Hemmersbach

Higher Mortgage Rates In Our Future?

Higher mortgage rates? I thought the economy was doing well? It seems almost backwards but a good economy is bad for interest rates. As the economy picks up steam,

Mortgage money is going to cost more


investors start to worry about inflation. How much will inflation diminish my investment returns? The answer is simple for them. They only buy investments that bring a higher return adjusted for a higher anticipated inflation. Mortgages with lower rates do not get purchased, so rates move up. Simple supply and demand. So while the good news is your retirement account is growing with every Dow increase, the bad news is that any credit you may have or acquire, like a car or home loan, will be at a higher rate.

What does that mean in dollars and cents?

A 0.25% rate rise on a $300,000 mortgage equates to a monthly payment increase of about $44.00 per month and while that may not seem like a lot, these little increases can add up. According to Samantha Sharf at Forbes, in an article for January 3, 2018, mortgage rates are anticipated to top out around 4.5% by the end of 2018.

Please call me for a free consultation. We can discuss if you are in the correct mortgage product or need help restructuring high credit card or soon to be higher Equity Line of Credit debt.

Rate Update 8 4 2011

August 4, 2011 Posted by Andre Hemmersbach

Rate Update June 1 2011

June 1, 2011 Posted by Andre Hemmersbach

Mortgage rates have really fallen in the last 40 days and the news for some reason has not yet covered the story. Mortgage rates are just like gas prices in that they go up faster than they come down, so if you have been thinking about a refinance or a purchase now is the time to act! See chart below.

Bond Prices as of 6/1/2011 (Bond prices and rates have an inverse relationship so green is good for lower rates and red means higher rates.)

Continuing questions about the strength of the economy at home and concerns about the financial stability in Europe have once again made investors seek the safety of a steady income stream like those of treasury and mortgage bonds.

Current Mortgage Rates:
30 Year Fixed 4.49% 4.53 APR
15 Year Fixed 3.75% 3.75 APR
10 Year Fixed 3.25% 3.32 APR
10 Year ARM 4.125% 3.39 APR
7 Year ARM 2.875% 2.992 APR

All the above rates are for 80% LTV, SFR, Purchase loan, loan amount of $417,000, 780 FICO and Impounds. Call or email me with your scenario.

Sincerely yours,

Andre Hemmersbach