By Dave Porter

The Coronavirus pandemic facilitated the historic low rates we experienced in 2020 and 2021. The factors that pushed the rates down are not present now. The Federal Reserve pushed rates down artificially to help offset the economic downturn and in uncertain times, investors often focus on Mortgage-Backed Securities when the economy is fragile. The combination resulted in very low rates. The lowest ever recorded. The Fed is dealing with the inflation ramifications now, and we are seeing rates rise.

In 1991 I remember rates going from double digits to single digit! Open the champagne! 

Folks, please don’t wait to buy. What you will lose in appreciation gains will not make up for a “maybe lower rate.” Look at the chart below from Freddie Mac. In the big picture, rates are still great. Grab it while you can. Don’t like talk of 6% rates? You really won’t like it when we start looking at 8%!

Let’s look at options. Give me a call.

This information is not intended to be an indication of loan qualification, loan approval or commitment to lend. Loans are subject to credit and property approval. Other limitations apply. Rates, terms and availability of programs are subject to change without notice. State disclaimer: loanDepot.com, LLC  NMLS ID 174457.  www.nmlsconsumeraccess.org Licensed by the OR Division of Finance and Corporate Securities, Mortgage Lending    ML-4972.| WA: Licensed by the WA State Department of Financial Institutions, Consumer Loan Company CL-174457. | ID | CA: Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act CRMLA 4131040.