Rates for home loans fell for the third consecutive week following nine weeks in a row of gains, Freddie Mac says in its latest survey.
The 30 year fixed-rate mortgage averaged 4.09% in the week ending January 19, down from 4.12% a week earlier, and the 15-year fixed averaged 3.34%, down from 3.37% last week.
A year ago, the 30-year and 15-year fixed rates averaged a respective 3.81% and 3.10%.
Source: Seeking Alpha, January 19, 2017, Carl Surran.
Note: These rates are for prime borrowers. I spoke to two note holders this morning who agreed to 3% interest rates when they sold their properties. One of them sold the property with no down payment and mentioned his buyer had bad credit. If you agree to sell a property and carry the note, you don’t give a prime interest rate to a non-prime borrower! As I say over and over again, you must be compensated for your willingness to accept installment payments rather than cashing out. One of the ways is to negotiate an interest rate that recognizes the risk you are willing to take, and 6% to 8% would be much more reflective of that risk.
