Mortgage News and Notes

We are not exaggerating one bit! Margie has been in the mortgage business for over 35 years, and she has never seen rates as low as they are today. Various economic factors have pushed the yield on the 10-year Treasury bill to about 1.00%, the lowest in many years. Since mortgage rates track the movement of the 10-year bill fairly closely, the result is nothing less than an unprecedented opportunity for homeowners to refinance their mortgage and potentially save hundreds of dollars each month.

Or, consider the option of refinancing to a 15-year mortgage, and reduce the total amount of interest paid and the number of years left on your mortgage without substantially increasing your monthly payment.

Whatever your situation, now is the time to contact Margie and have her review the numbers with you. She will be happy to show you how you can benefit from some of the lowest rates in memory.

Steven H Hofberg, Operations Manager

Posted by Steven Hofberg on March 14th, 2020 5:35 PM

Mortgage rates are at their lowest level in more than three years. The average rate on a 30-year fixed rate mortgage dropped to about 3.50%, according to figures released last week by Freddie Mac. Not surprisingly, as a result of such low rates we are seeing a very early start to the Spring home buying season. Sellers want to take advantage of the increased buying power of potential buyers that comes with lower rates.

The increased buying power is a direct result of lower interest rates. In just the last 12 months, rates on a 30-year fixed rate loan have dropped a full percentage point. That translates to a mortgage $70,000 larger with the same monthly payment. For potential homebuyers now looking for a home, that additional buying power will come in very handy in a very competitive market. Last year’s purchaser could today make an offer almost $90,000 higher, assuming 20% down. It’s nice to have that in your back pocket when home shopping.

If you are looking for a home, or planning to look, do yourself a favor and contact Margie for more information. She will be happy discuss your personal situation and run some numbers for you. Knowledge is power.

Steven H Hofberg, Operations Manager

Posted in:Rates and tagged: RatesMortgageratespurchase
Posted by Steven Hofberg on February 13th, 2020 12:47 PM

2019 started off with 30-year fixed rates right around 5% and expectation was that they would climb and end up in the mid 5’s by the summer. Happily, most of the experts were wrong and rates instead came down to the upper 3’s by the spring and have been holding fairly steady through the fall.


The savings for clients have been considerable. If you took out a $500,000 loan in the fall of 2018 at 5.25% and then refinanced in the summer of 2019 at 3.75% you saved around $450 per month! Lower rates also made housing far more affordable which was very helpful in a high cost area like DC. A $3000 per month payment in the summer of 2019 at 3.75% qualified you for $90,000 more house than the fall of 2018 at 5.25%.


2019 was not only a wonderful year for mortgage rates but it was a special year for us as well. We added a grandson and future son law to our family!


We hope that 2019 was also a productive and successful year everyone. We are looking forward to seeing what 2020 will bring.


Happy New Year!


Margie and Steve

Posted by Steven Hofberg on January 1st, 2020 3:29 PM

There are a lot of winds swirling around the economy right now, including those from trade, budget, financial markets, and politics. Last month, the Federal Reserve lowered the federal funds rate by another 0.25%, the third rate cut since July. Overall, the economy has continued to hum along in moderate fashion, with some weakening in both actual and projected economic growth rates. Normally a weaker economic outlook would put downward pressure on rates, but the news regarding the China tariffs is considered favorable by the markets, offsetting that trend.


In spite of all of the crosswinds, or perhaps because of them, mortgage rates have been mostly steady over the past month. They move a little each way, but have stayed in a fairly narrow range, and remain favorable to borrowers. Fixed rates are in the high 3s for 30-year financing and in the low 3s for 15-year. Of course, rates fluctuate daily so be sure contact Margie for the most current information.


Steven H Hofberg, Operations Manager

Posted in:Rates and tagged: Rates
Posted by Steven Hofberg on December 17th, 2019 10:04 AM

Wow, lots of news over the past few days. And as we always mention in our newsletters, much of that news does affect mortgage rates. As you probably know, rates have gone down recently to a rather stable range in the high 3s. But on Thursday and Friday we had several big shocks to the market, and rates jumped up about a quarter of a percent. That’s a big jump!


What happened? Many financial analysts are pointing to two events. First, optimism on future trade talks between the US and China, as both countries delayed tariffs and gave indications of their interest in further negotiations. That helps the stock market, but hurts the bond market. Second - a really huge one - the attack on Saudi oilfields. The attack reduced their production by half, which amounts to 5% of the world’s oil production. This one has caused great uncertainty, to which markets always react badly. Oil prices did spike up on Monday, but most think there is sufficient world supply at least for now. That may change at any time.


The moral of this story is that you shouldn’t be complacent about mortgage rates. They are historically volatile. Rates are still very good right now, but there is lots of uncertainty in the market. So, if you are looking to buy or refinance your existing mortgage but haven’t started the process, give serious consideration to moving forward soon.

Posted in:Rates and tagged: RatesRefinancepurchase
Posted by Steven Hofberg on September 18th, 2019 12:34 PM


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