Mortgage Rates for 2013
As the real estate market continues to improve I receive many questions about what is going to happen to mortgage interest rates for 2013.
As of January 23, 2013, the mortgage interest rates for a 30 year conventional fixed rate was 3.5% with an APR of 3.62%; Both the FHA and VA loans are at 3.25% with an APR% of 3.29%.
As I look into my crystal ball – and more importantly – review data from experts, I think we can comfortably say that interest rates will remain relatively steady throughout 2013, although they are expected to rise somewhat.
To most buyers the interest rate increase will only have a marginal effect on their buying power. What will have a dramatic effect on their buying power is the increase in home prices. The last two homes that I have sold have been at or only slightly below the asking price. The increase in home prices will have an effect on the buyers ability to buy the home they may want.
There are two main changes to the way mortgage companies can do business. First of all, and long over due in my opinion, is that mortgage companies can no longer offer what was called “no doc” loans. These were mortgages that did not require any documentation of income, expenses – anything. Crazy!
The second major change is that mortgage companies can no longer offer teaser rates to home buyers. Not as crazy as the no-doc loans, but again in my opinion was setting the buyers up for failure.
The good news is that buyers can still get a mortgage with as little as 3.5% down.
If you are thinking of buying or selling, talk to a REALTOR who can give you the answers you need to make an informed decision. This clearly may be the best time to buy or sell.
As always, if I can help with any of your real estate needs, please feel free to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.