Meredith, NH—The drop in the 10-year treasury note is pointing to lower mortgage rates during our prime selling season according to Frank Roche of Roche Realty Group in Meredith, NH. “The 10-year treasury yield dipped below 1.8% today and this will have an impact on mortgage rates. The average 30-year fixed rate mortgage was at 3.44% for New Hampshire as shown on Zillow.com on 01/15/2015. There’s no question the huge drop in oil is also pushing these already attractive mortgage rates downward.” Said Roche, “I saw gas prices below $2.00 for the first time in 6 years.”
In addition to new mortgages for re-sales and new construction these falling yields, which are the lowest since May of 2013, for treasuries will open up new refinancing opportunities for existing home owners as well. Think back a year ago…The rates have dropped even further. During the past several years many homeowner’s jumped on the refinancing band wagon; however, at today’s rates there’s still time to jump into the arena. “I heard on the news the other day that applications for refinances were up 66%. I’m sure there’s tons of homeowners who still carry an interest rate in excess of 4.5% where refinancing makes sense.” FHA insurance premiums will drop a half percentage point effective January 26th, and Fannie Mae and Freddie Mac are talking about new programs where consumers only have to put 3% down. Additionally, some of the adjustable rate mortgages being offered today are very eye-appealing. The 7 or 10 year adjustables make a lot of sense for many individuals where time horizons are not long-term.
Today’s consumer will benefit from the lower mortgage rate environment and the dramatic drop at the gas pumps and lower heating oil costs. Likewise, the stock market has produced healthy gains during the past several years. It’s a great time to pull out some of the gains and diversify your portfolio in other ways, possibly a 2nd home/vacation property or real estate investment. One thing is certain, at some point in the future we will see inflation rather than deflation and real estate will benefit, especially with today’s attractive interest rates.
The mortgage application process can sometimes be intimidating, but Roche cautioned buyers to talk with individuals you know and trust. There are many options out there…established local lending institutions, regional banks and mortgage companies, as well as websites with up to date information online. It’s not just the loan rates, term and fees. You must look at the underwriting process, the appraisal process and will the lender be farming out the paperwork on the loan servicing. Ask the right questions: Will the lender continue to service the loan for the full duration? Talk with experienced Realtors® and lenders and find a comfort zone where trust, professionalism and service is paramount.
In the Lakes Region it’s an opportune time to acquire real estate. Real estate sales have not soared to high levels like we see in California, Seattle, Denver, Miami, N.Y.C., Boston and other markets. There’s some great opportunities out there at all price points. Timing is everything. When you couple a good acquisition price with low interest rates and low fuel costs, and some stock market gains, the net package looks very attractive.