Ryan, what is going on with Interest Rates? Being in the mortgage business for over 15 years now, I have been getting this question more over the past 60 days than any point in my career. And for good reason – we’re currently seeing some of the lowest mortgage rates in history.
The mortgage industry, just like the rest of the world, has changed significantly since COVID-19. Just like the Great Recession of 2008, during this crisis Mortgage Banks tightened up their guidelines making it more difficult to get a mortgage. For example, on April 13th, 2020, Chase announced that they are only accepting mortgages with a 20% down payment. Earlier in the year they allowed as little as 3% down.
To combat this pull back from mortgage banks, the Federal Reserve announced in March that they will be purchasing mortgage backed securities for the foreseeable future. In layman’s terms, this is the Federal Government keeping mortgage rates at historic lows so people will continue to borrow and spend money during the pandemic. As a result, we are seeing rates at some of the lowest levels ever.
Interest rates at the end of 2019 averaged a 3.875% on a 30-year fixed. As of May 2020, interest rates averaged a 3.25%. These low rates are making now a very good time to buy or refinance.
If you have any questions on current rates, purchasing a home, or refinancing, call me any time directly at 480-635-3035. I’m always available to help.
Sr. Mortgage Banker
3489 East Baseline Road Gilbert, AZ 85234
O: 480.635.3035 F: 480.635.3135