Real Estate Financing Recap

The most frequent question I get from buyers is “When do you think rates will go up?”  My standard answer has been, “There are a lot of factors that impact rates, locally and globally, but I would anticipate rates to be higher next year than they are today”. 

For the past few years, my forecast has been generally incorrect, including now, as rates are lower today than they were a year ago.  Logic would dictate that rates will eventually go up; however, there are so many factors influencing rates (U.S. economy, foreign economies, global issues like the conflict in Iraq and Ukraine, etc.), it’s impossible to say when.  Today the jobs report was released and the expectation was for 230,000 new jobs, but only 142,000 were created, so it seems my forecast is destined to remain incorrect (at least in the short-term).  But, things can change quickly…and when rates rise, purchasing power will fall. Now continues to be a good time to buy a home

Here’s a sample of interest rates with a 20% down payment heading into the weekend:

Conforming Loans (up to $417,000 with 20% down)

30-Year Fixed    

  • 4.125% w/No points (APR 4.16%)
  • 4.000% w/1.25 points (APR 4.14%)

Jumbo Loans (up to $2,000,000 with 20% down)

30-Year Fixed    

  • 4.125% w/No points (APR 4.15%)          
  • 3.875% w/1.75 points (APR 4.03%)

7/1 ARM              

  • 3.250% w/No points (APR 2.97%)             
  • 3.000% w/1.000 points (APR 2.97%)

5/1 ARM              

  • 2.875% w/No points (APR 2.84%)      
  • 2.500% w/1.375 points (APR 2.83%)

Jonathan O’Donnell
Senior Loan Officer
Bank of Manhattan

NMLS #301511
310.480.6863 cell
310.622.1133 direct