Interest Rates Are Low. No, Really, They Are.
We had one of our key lenders ask a great question in the sales meeting the other day.
“Going back to 1971, when was the FIRST time the 30 year fixed rate hit 6.25%?”
Guesses were flying everywhere. No one was even close. The answer?
Summer 2002.
That’s right. In the 70’s, 80’s and 90’s, the 30 year fixed mortgage rate for Marin County was always above 6.25%. Always. It did not hit 6.25% until four years ago.
The next question was “What is the 30 year fixed at today?”
And the answer of course, is 6.25%. That’s for a non-conforming loan by the way - conforming loans are at 6.15%.
So when we say that by historical standards, these are great rates, this adds some real perspective to it.
These really are great rates, and that’s why people are starting to refinance again also.
[…] 1. Anecdotal evidence. There’s plenty of activityright now. We have been getting lots of showings on our listings. Well priced homes sell fast - one home in our office went out last week, well priced, and had eight offers, another one had four offers. We work in the largest office in Marin County, so we get a pretty good idea of what the market is like, and there’s plenty of activity here. Don’t kid yourself - there are plenty of buyers out there. 2. Interest rates are holding steady. They’ve climbed a bit in the last few weeks, but the 30 year fixed for a jumbo is still around 6.35%. That’s great by historical standards. […]