The May jobs report raised mortgage rates across the board, pushing some lenders to rates in the 4’s, after seeing rates in the 3’s most of the year. This is exactly what we’ve been warning you about. What does this mean for home buyers in the back half of 2015?
It means that NOW is the time to call. When rates rise sharply on the backs of unequivocally positive news, such as a large uptick in new jobs, it’s a sign that they should continue to rise for the rest of the year. This is thousands of dollars we’re talking about. Refinancing or buying NOW lets you lock into these still-low rates before they have a chance to get really high. It’s also a great time to get out of an ARM, as rates are about to rise, and you don’t want to get caught out in the cold when they do. If you have an Adjustable Rate Mortgage, you need to get into a fixed right away, so that you can set your budget.
Higher rates can also make it more difficult to get that mortgage in the first place. Many borrowers come in close to the debt-to-income ratio guideline anyway, and every percentage point you go up makes it a little harder. Even a small interest rate hike can put a borrower over the limit, making a refinance or new home purchase much more difficult.
Make sure that you don’t miss the boat. If your interest rate is not in the 3’s, you really need to call us here at The Home Loan Expert to get the process started, before it’s too late. You don’t want to miss out on these low rates. Call The Home Loan Expert, Ryan Kelley today at (317) 550-1515 or apply online at www.thehomeloanexpert.com/indianapolis today. Nobody makes it easier to refinance or purchase a new home at today’s low interest rates than The Home Loan Expert, Ryan Kelley.