FRESNO, Calif. (KFSN) — A mortgage interest rate of 5.99% was an encouraging sign for both buyers and loan officers like Paul Salazar of American Pacific Mortgage in northwest Fresno.
“They’re going in the right direction,” he said. “When it starts to get lower, you’re looking at a swing on a house payment anywhere from $100 to $200. That’s significant for someone with a tight budget. With that being said, there are now a lot of people starting to say ‘I want to get pre-qualified.'”
Salazar notes the rate is also affected by current events, such as the US war on Iran.
“Initially, you’re going to see a lot of gloom and doom, if you will, or people’s knee jerk reaction happening in the market,” he said. “Oil prices have gone up a bit. The market’s going a little crazy right now but throughout the process of this operation, you’re going to see it start to stabilize.”
Salazar expects the mortgage interest rate to stay below 6% this year.
He adds the drop has been enough for some to begin a serious search for a home.
“A lot of them are waiting for their tax refunds, filing their taxes so they can have some money for their down payment or their closing costs,” Salazar said.
We could see a further rate reduction when the Federal Reserve Board meets in mid-March.
The next meeting of the Fed takes place March 17-18.
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