What’s happening with interest rates?

Welcome back to my video blog! Today I have with me my preferred lender, Tom Ross of Nova Home Loans.  I wanted Tom to explain to us what exactly is happening with interest rates and where they are going.

Tom Ross:

People ask me this all the time. If you are looking to buy a home, the ideal credit score is 740; that’s the squeaky clean scenario.

Interest rates are currently around 4.5-4.6 percent. Now, if you remember rates recently spiked up to 5 percent and have slightly dropped since then.

Why is that? Over the past couple of months the Federal Reserve had hinted it was going to pull back on buying mortgage-backed securities. When they announced this, rates began to increase.

Well, in the last meeting they decided to continue to purchase the mortgage-backed securities for now. It’s really important, then, to take care of the market. Rates can increase at any moment.

Both buyers and sellers should make their move now. Buyers need to lock in that low interest rate and sellers need to put their home on the market for those motivated buyers.

If you have any questions, please give Monique or me a call. Thanks for watching!