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
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
Bond Market Weakness Pushes Mortgage Rates Lower
From the RMC Newsletter dated June 4, 2019
Domestic financial headwinds and trade disputes, particularly the
huge one between the US and China, have investors moving into “safe havens”
like US Treasury bonds. The yield on the benchmark 10-year Treasury bond
settled on Tuesday of last week at 2.268%, its lowest close since September
2017. Investors, analysts, and the Fed itself look to Treasury yields as a
barometer of economic sentiment. Bond yields also factor heavily in the cost of
debt for all types of borrowers, including home buyers. Few analysts see a risk
of imminent recession, but many are predicting slower growth primarily due to
disruptions of global trade caused by higher tariffs.
This economic stew does have its positives, one of which is its
effect on mortgage rates. They generally track the 10-year bond yield, which
has been falling substantially over the past few months. The impact on rates
has likewise been substantial, falling a full percentage point in the last six
months. This has made home ownership more affordable and it has opened the door
to more borrowers who wish to refinance to lower their rate, take cash out, or
recast an ARM that has or will soon adjust upward.
Summer is just around the corner, and many folks find that
this is the perfect time to get moving on a home improvement project. Think of
finishing the basement or turning the rec room into a media center. Many
homeowners choose new or updated bathrooms or kitchens. They are both
considered to be among the improvements that can result in the best payback in
With mortgage interest rates still low, refinancing your
mortgage can be a good option to enable you to finance that project. Both
Freddie Mac and FHA offer cash-out refinance mortgages up to 85% of the value
of your home. For example, taking out $50,000 in cash at a rate of 4.125%
results in a payment of $242 per month (APR 4.208%). Let us run the
numbers for you. We think you will be pleasantly surprised.
There is more good news, this time under the topic of RMC in
As many of our readers know, RMC has been a proud sponsor of
the DC Gay Flag Football League (DCGFFL) for several years. The “final four”
games were played last Sunday on the Rock Creek Park fields at 16th
and Kennedy Streets, and it turned out to be a very special day. Players from
the league presented Margie with a plaque thanking her for her sponsorship and
support of the DCGFFL. Also, our son Mark Hofberg’s Purple Team won the league
championship in a very hard fought and well played game. Lots of smiles all