Money is still money, and the money managers want their money to make money! 30 year mortgages for owner occupied properties have hit a low. When I say a low, it’s the good kind. When I was reading the Morning Brew this morning, this was one of the headlines:
Housing: Picture a limbo stick that’s barely an inch off the floor—that’s mortgage rates right now. The average rate on the 30-year home loan crossed a key threshold to 2.98% this week, the first time it’s been below 3% since they started keeping track.Free Morning brew daily newsletter
Dr. Dotzour thinks we’ll get even lower than we are right now. Most likely to 2.5%. These low yields make money look for something more. In the last week, I’ve seen several real estate investor focused lenders drop rates, and roll out new programs. Some of these aren’t quite as good as they were before the chaos of 2020, some are actually better. If you need financing, it is a great time to shop around. I’m happy to help. Just fill out this form and I’ll personally introduce you to the lenders I am using right now.
In March, when the bond market froze up, so did a lot of the loans. It was a pretty bleak picture. I’m happy to report that the lenders are roaring back onto the scene with a very thirsty appetite. 30 year investor paper is back in the high 5% ranges, and will probably get lower soon. If you’re like me though, you can’t just sit on property without refinancing.
My advice, if your lender said no within the last 90 days, you should ask again.