The chart above tracks interest rates over the past 200 years. We are experiencing interest rates nearly as low as anytime over that period of time. Our challenge is making those rates available for the average home purchaser. We continue to see underwriting guidelines that penalize the home buyer with relatively solid credit, good income, and sufficient cash for a down payment. Lenders obviously got burned during the recession but they are turning away good business. It makes no sense. I don’t see the housing market making a strong recovery until lenders change their lending practices.
In the meantime, those buyers who can qualify for a mortgage will get an incredible deal. Kim and I are considering refinancing again after refinancing just last year. I’m a firm believer in the quote “It’s not the price but the terms” and the terms are pretty good at the moment.
Thanks to Devon DeCrausaz, Branch Manager & Vice President at MegaStar Financial Corp for use of the chart. MegaStar is one of the few lenders with common sense lending practices.