Interest Rate Update
Interest rates are hovering near all-time lows. However, you have to be careful with the reports that the media puts out in terms of rates. A couple weeks ago, there was a report that rates had hit an all-time low according to the Freddie Mac’s report. When going to Freddie Mac’s website, you see the rates they use factor in you paying .8% in points. Points are additional closing costs on top of the standard lender, escrow, and title closing costs. The .8% in points on a $500,000 loan amount is an additional $4,000. Also keep in mind rates change daily with the market and depending upon property type, occupancy, credit score, loan program, and the amount of equity you have in your property. Feel free to reach out to us if you would like to an analysis of your current loan and see if a refinance makes sense based on your short and long term goals.
Economy / Housing Update
As we enter the end of July, the economy is seeing improvement. Housing Starts and Building permits saw significant increases in single family homes from May to June. Builder confidence has increased since last month, sales are rising and buyer traffic has jumped significantly. Permits for single family homes saw a big jump last month and we are currently only down 4% on an annual basis which is a big improvement from the previous report which showed we were down 23%. New home sales, which measures signed contracts on new homes, were up 13.8% in June which was much stronger than the 4% gain anticipated. We are starting to see more positive signs of increased consumer spending, small businesses are at their best levels since February.
Did you know that we are the #1 reverse lender in the country? If you are over the age of 62, have sufficient equity in your home/primary residence and meet FHA requirements, this may be a great option for you. It can free up funds to travel, help family members with education expenses, make charitable donations, or to simply build up cash reserves. Contact us today and we will connect you with a reverse mortgage professional.