Provided by: Carla Landrum with Preferred Lending
The worldwide supply and demand for money determines what we pay for all kinds of financing, including mortgages. As much as Hurricane Harvey was a huge event, its impact on mortgage rates has been minimal.
Freddie Mac reports that prime mortgage rates were 3.86 percent for the week of August 24th just before the storm. They actually fell to 3.82 percent for the week of August 31st.
Today’s mortgage rates are remarkably low by historic standards, and did not spike as a result of Harvey. This is good news for mortgage borrowers nationwide, and it’s also good news for Harvey victims because it means cheap funding will be available as they re-build.
Rates may be pressured to increase as the effects of Harvey over the long term will stimulate jobs and certain sectors from construction suppliers to auto’s as homes will be repaired and cars will be replaced. As economic indicators increase positively that tends to put the pressure on interest rates.
Lending programs such as Fannie Mae Homestyle and FHA 203(K) Rehabilitation loans can assist with the rehab costs for homeowners as well as the purchase of home that are in need of repairs.
Also for homeowners and renters displaced by the floods there are no down payment programs available through FHA for disaster victims.
Bottom line is that certainly in the near term our rates should remain low which is a huge benefit to new homeowners.