Will Mortgage Rates Rise? What Effect Will Rising Mortgage Rates Have?

Banks seem to be lending money for home purchases to a very select group of people.  This means only a small percentage of people can benefit from the 3.0%+ mortgage rates being offered.  What reason could the banks have?

The lenders seem to be concerned about potential issues with their balance sheets if interest rates rise.  Should interest rates rise to 5.0% or higher, the banks might be forced to write down the value of existing loans on homes.  As such, the banks may need to raise funds in order to have adequate reserves and keep their leverage ratios in compliance with mandates. 

For the banks the solution seems to be lend little and to only the most creditworthy.  Should rates rise, they would not have many lower interest rate loans on the books and the prospect for defaults would be less as a result of lending to only to those with the highest levels of creditworthiness.

Eventually rates will increase; the Federal Reserve cannot hold down rates forever.  Therefore, if you are among the lucky few who can get a mortgage at the favorable rates being offered today, you might want to take action.  Whether that means refinancing or trading up or down to a new home, it might be a good time to take action.

I can help you with both finding the right home, selling your current home and putting you in touch with mortgage professionals that I know-- all with no obligation to you. I have relationships with mortgage professionals who are willing to work with my customers with no obligation. Please contact me for all of your questions, whether they be related to financing, the housing market, or even how close a shopping center is to a certain community.

I take an analytical approach to buying, selling and leasing real estate. I work with families, people looking for a rental home, a second home, investors, etc. As a Realtor, I am aware of trends in the domestic market, as well as in the local markets throughout South Florida. If you are thinking of selling or buying a home, please feel free text me or call me at 561-247-3550.


For free home searches, please text me your name, e-mail address and phone number or visit my Web-site at http://homes.MYsouthFLrealestate.com

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550

An Analytical Approach To Buying, Selling and Leasing Real Estate

http://MYsouthFLrealestate.com

The greatest compliment you can give is the referral of your friends and loved ones

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

Is The Mortgage Situation Improving?

After the credit crisis and the housing market crash, it was very difficult to get a loan.  I think this is one of the reasons for the malaise in the housing market during that period of time.

However, a recent article on CNBC.com indicates there is a bit of easing in the mortgage market.  The article indicates lenders are beginning to me more accepting of "average loan candidates."  The last several years saw the majority of loans being made out to borrowers who put down at least 20% and had an average credit score of 760, according to the article. 

Seemingly, lenders are now making more loans to borrowers who do not have all of the criteria listed above.  Maybe they are putting down less than 20% with a mid-700 credit score or have a credit score a bit under 760 with 20% down.  Apparently, some lenders are willing to finance 95% of the home's value as PMI insurance is becoming increasingly available.  Federal Housing Administration (FHA) insured mortgages are also increasing in popularity.

I have relationships with mortgage professionals who are willing to work with my customers with no obligation.  Please contact me for all of your questions, whether they be related to financing, the housing market, or even how close a shopping center is to a certain community.

I take an analytical approach to buying, selling and leasing real estate. I work with families, people looking for a rental home, a second home, investors, etc. As a Realtor, I am aware of trends in the domestic market, as well as in the local markets throughout South Florida. If you are thinking of selling or buying a home, please feel free text me or call me at 561-247-3550.


For free home searches, please text me your name, e-mail address and phone number or visit my Web-site at http://homes.MYsouthFLrealestate.com

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550

An Analytical Approach To Buying, Selling and Leasing Real Estate

http://MYsouthFLrealestate.com

The greatest compliment you can give is the referral of your friends and loved ones

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty