Through the constant onslaught of dire news in the mortgage markets, did you notice that the average 30-year fixed-rate, conforming mortgage rate was 6.20% according to Freddie Mac?
Compare this with the average rates each year since 2000:
| Period | Rate |
| November 21, 2007 | 6.20% |
| 2006 | 6.41% |
| 2005 | 5.87% |
| 2004 | 5.84% |
| 2003 | 5.83% |
| 2002 | 6.54% |
| 2001 | 6.97% |
| 2000 | 8.05% |
Not too bad!
Of course, lending guidelines are now more strict. It’s more difficult and more expensive to borrow more than 90% of the value of your home. Stated income loans are harder to come by. Poor credit will hurt your prospects for a reasonable loan. Negative amortization loans have less attractive terms and conditions. And jumbo loans are a little more expensive compared with conforming loans.
But if you have good credit, can document adequate income and don’t over-leverage your home, rates look better than last year and in the early 2000’s.
Did you get that? Good credit, adequate income, reasonable leverage. It makes sense, doesn’t it?
