guest post by Ken Dickson
Clients, buyers and prospects who are waiting for even lower interest rates on home loans (new construction, purchasing or simply refinancing) may well be making a very costly mistake. The most accurate comparison of mortgage loan interest rates comes from a report recently published by the Federal Home Loan Mortgage Corporation giant (Freddie Mac). This report published on Feb. 29, 2012 and called the Weighted Average Coupon (WAC), details the average interest rate for all mortgage loans currently held by consumers. Since 1977 the WAC has ranged from a high of 11.40% in 1984 and 1985, to the lowest recorded rate in 35 years which is today’s rate of 5.25%.
With construction loans for single family homes being offered by many lenders at rates below 3 .50%, and 30 year fixed rate mortgages being offered at rates below 4%, this is no time to “weight”. It’s time to build, buy and refinance!
For more information contact Ken Dickson, firstname.lastname@example.org
Senior Vice President
Johnson Bank – Madison