No Change in Rates, Still at an All Time Low

posted 9/29/2015 in Mortgage

There was no change made in the federal funds rate by the Fed. There were cited concerns that weaker global economic growth around the world could exert downward pressure on U.S. inflation rates, which already are well below the Fed's target level. This led to Fed officials lowering forecasts for inflation for the next several years.

Of course, within the mortgage industry, everyone was anxiously waiting which answer we were going to hear.  This is great news for homebuyers and homeowners who still haven’t taken advantage of a lower rate.  At Lincoln Savings Bank, we want the win-win, the customer comfortably affording their new payment WITH the house they really wanted, no settling.

Based on Freddie Mac’s weekly mortgage survey, September had the largest one-week mortgage rate drop since January of this year, and puts 30-year mortgage rates below four percent for the fifth straight week.  Thanks to the mortgage rate drop compared to last year, today's home buyers can afford close to 10% "more home" as compared to the start of last year.  That much of a jump in affordability means opportunity for increase in size or overall quality of your prospective home.

The homebuyers aren’t the only ones who should be taking advantage of the low rates.  Refinances should be on any homeowner’s mind who hasn’t assessed the current rates to their existing rate in the past few years.  A good rule of thumb for determining if a refinance is going to be a significant cost savings is if you’re able to obtain a minimum of 150 basis points (1.5%) lower than your existing rate.

Mortgages are not a one-size-fits-all product.  Make sure you find a lender that asks and listens to what your personal goals are for paying off your loan, affordability on house payment, and long-term plans.  At Lincoln Savings Bank, we customize the mortgage to the customer, not the other way around. 

If you have questions on current rates, if we’re able to qualify you, or any general mortgage questions you may have, stop in or give us a call today.

Information provided by Steve Hermann, NMLS#406036, Regional Mortgage Manager, Lincoln Savings Bank, 2701 Stange Rd, Ames, IA 50010, 515-292-2005, steve.hermann@mylsb.com
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