Someone asked me at a closing the other day how rates are, and I said routinely “They are okay.” After thinking for a few seconds about what I had just said, I had to correct myself and said, “Actually, they are fantastic!”.
I was so naive about rates when I started in the early 1980s that I had no idea just how bad it was. Interest rates were in the mid to upper teens. New construction was about to come to a screeching halt, and many people in the real estate and lending industries were about to get a swift kick in the pants.
We have come a long way since then. I never dreamed of seeing rates below three percent, or watching them continually decline over this long of a period of time. Anyone entering the housing market over the last five years has never known anything different. It just goes to show you that it is all in the perspective.
We are experiencing a unique time in our history with unprecedented low interest rates. There has never been a time, at least in recent history, when money could be borrowed so cheaply. If you believe the media and what comes out of Washington, the Federal Reserve has indicated they are going to hold the line on rates until at least 2015. On the other hand, I read just a few weeks ago that 2013 will probably be the last year to take advantage of these amazingly low interest rates. Everyone has a guess on what will happen. Hey, you have a 50% chance of being correct, right?
I do think that the clock is ticking on these historically low rates. As the economy continues to trudge onward towards a very slow recovery, interest rates will slowly move with it. Because of the delicate balance with the economic recovery, the key word is ‘slowly’. The housing market is key to that recovery, and any large increase in interest rates that may stifle home sales would be catastrophic.
If you have not taken advantage of the low rates to refinance your existing home, or purchase a new home, 2013 is the year for you! As we round the corner into February, things seem to come back to life in Lincoln. As the weather gets warmer, the homes that come on the market increase with the temperatures. I think that as a general rule, people feel more optimistic about the economy and more secure about their jobs than they have in recent years. I am confident that we will continue to see increased sales of single-family homes this year.
We have seen a tremendous number of refinances over the last few years, to the point of refinancing some of the same individuals two or three times! If you were not one of them, you still have time. But I wouldn’t wait much longer. This is a great time to at least see if refinancing makes sense for you, whether it is reducing your payment, the term of your loan, or both.
Why choose West Gate Bank for your Mortgage needs?
As a locally owned full-service community bank, West Gate Bank truly is Lincoln’s Bank. We are committed to providing our customers with all the services a large bank can offer with the outstanding customer service only a community bank can provide.
The Mortgage department at West Gate Bank also has the experience and expertise to handle your financing needs. We make the decisions locally with our own staff of underwriters, and we control the entire process from application to closing. After the closing, you make your payments to us. If there is a question or issue, you can call us or visit us face-to-face. We have competitive rates and fees, and many financing options available, because not everybody fits into the secondary market guidelines.
Contact us today for your financing needs by calling 402-434-3456 or visiting westgatebank.com.
|05/21 - 7:30 am||
Lincoln Partnership for Economic Development Annual Breakfast Event in Nebraska
Cornhusker Marriott Hotel, Lincoln NE
|05/27 - 12:00 am||
VictoryQuest 2nd Annual Quest for the Vets 5k Obstacle Course Run
Lincoln, Lincoln NE
|05/27 - 1:00 pm||
Victory Quest Announces ‘Quest For The Vets’ 5k Challenge Event
Camp Gargano, Lincoln NE
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