Many homebuyers – at least those with good credit records – have no problem in obtaining a needed mortgage at very low rates historically. That may surprise some readers, after hearing all the bad news about problems plaguing mortgage companies and the lack of availability of certain types of loans stemming from the problem-prone subprime mortgages.
At this writing, prime mortgage interest rates are creeping up a bit, but are still at very low levels. Funds are readily available for these loans if applicants have good credit scores and histories. This, along with home prices that have stabilized or lowered in most markets and sellers who are highly motivated, present a window of opportunity for many of today’s home buyers.
“Interest rates on prime conforming fixed-rate mortgages are ticking up a bit in line with 10-year Treasury rate movements,” said Frank Nothaft, chief economist for Freddie Mac, a major government-sponsored buyer of home mortgages. “Problems in the non-prime mortgage market where funds are expensive and hard-to-get has not affected the prime conforming market.”
Mortgages that are difficult to find today at reasonable rates are subprime mortgages (needed by borrowers with poor or marginal credit records), and “jumbo” mortgages (large loans more than $417,000 in most areas of the country). However, these mortgages can be found.