Mortgage Blog

A lot of borrowers called me today regarding the interest rates. And Explained to some of my clients a few days ago.

1)Compared to the history low rates, even if the bonds are at the same level, the rate still might be higher. The main difference is the Fed rate is about 0.25% to 0.5% higher.

2)So Fed Dec rate hike makes the lending cost 0.25% (points) higher, so the interest rate is about 0.125% higher, compared to the same level before.

3)If you check with the agents about the rate for some time, 15 yr fixed rate, and high balance 15 yr fixed rate did not go lower at all. And even 30 yr fixed rate does not change much as well.

4)In the future, lenders might want to lower the profit margin to get you lower rates. But at this moment, we did not see this trend yet.