Money for nothing and the baby chicks are free (or something like that, I was never very good with lyrics), and so is the money for lending. Heck, in England the interest rates to purchase a home are almost 1%. Except, no one there is in the mood to buy.
Back across the pond, our mortgage rates took a surprising turn downward when Britain voted to exit the European Union (Brexit). The English and European investors pulled their money out of England and invested in Uncle Sam’s boring, dependable treasury notes, which affect our 15 and 30 year fixed rates, bringing the ten year treasury down to near historic lows.
The adjustable rate mortgages are affected by the FED fund rate. Move along, nothing to see here. The A.R.M.’s have not experienced any decrease or increase in several months.
The 30 year fixed mortgage rate still isn’t anywhere near where it should be. Greedy banks are holding on to the spread (read: profit). The rates increased a tad over the past week once Europe and the UK accepted the reality of the pending divorce.
Speaking of mortgages, want to know about a cool lending program? The new conventional HomeReady is the loan for summer. Fannie Mae keeps tweaking it for the better. Buyers can purchase a home for as little as 3% down. Incredible rates, low mortgage insurance and the qualification is easy (or as easy as it gets in our crazy lending world). Gifts, cash on hand, non-occupant co-borrowers, roommate income, are all acceptable and the list goes on.
Fannie Mae has pledged to assist first time home buyers to purchase their first home. Now, if Fannie could pledge to assist the OTHER loan programs that would be awesome.
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