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.<\/p>\n
“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.'”<\/p>\n
Salazar notes the rate is also affected by current events, such as the US war on Iran.<\/p>\n
“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.”<\/p>\n
Salazar expects the mortgage interest rate to stay below 6% this year.<\/p>\n
He adds the drop has been enough for some to begin a serious search for a home.<\/p>\n
“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.<\/p>\n
We could see a further rate reduction when the Federal Reserve Board meets in mid-March.<\/p>\n
The next meeting of the Fed takes place March 17-18.<\/p>\n
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