Interest Rates In 2016
Most common question asked of Mortgage Professionals:
What is going to happen with interest rates this year?
My answer: I have no idea.
O
By Jayson Stebbins
Mortgage Professional
Jayson Stebbins is a 22 year
veteran of the Mortgage
Banking industry and an
Accredited Mortgage
Professional through the
Mortgage Bankers Association.
He grew up in Morgan
Hill and currently lives in
Gilroy. He is the local Branch
Manager of Guild Mortgage,
a 55 year old Mortgage
Banking firm. His office is in
Morgan Hill and serves all of
Santa Clara, San Benito, and
Monterey counties. You can
reach Jayson and his Team at
408-782-8800 or at jsteb-
bins@guildmortgage.net
64
ning. A consultation with a Mortgage
f course that isn’t my
Professional can help shed light on
actual answer, but
what may happen, and how it could
sometimes that is how I feel. The fate
impact you.
of many transactions rests on deciding
What is going to happen to rates
what to do and when, and trying to
this
year? I don’t try to predict or
predict a very volatile benchmark like
forecast. What I tell my clients in
interest rates.
this market is if the rate serves your
People who were holding out to
needs, if you can
refinance have
get into the home
been awakened to
you want or save
…if the rate serves
the fact that rates
enough money to
can move quickly
your needs, if you can
justify a refinance;
and when they
lock the rate. I lean
do, the window of
get into the home you
conservative on this
opportunity can
want
to
save
enough
point…take care to
shut. Many people
protect the rate you
who are now try-
money to justify a refi-
want before it gets
ing to buy a home
higher. Recent history
see the rates going
nance; lock the rate.
shows it gets worse
up and worry that
faster than it gets
it will impact their
better, and we may
qualifying.
have seen the last of the “golden age”
As of the writing of this article we
of rates.
are seeing a month-long trend of rates
Could rates improve the day after
moving up. Depending on what hap-
I
write
this article? Could they go up?
pened in December, we my be facing
Could the government change course
an increases you read this or in the
on strategy and rates? Could there
Spring. What is the long-term view of
be a natural or man-made event or
rates and what may happen to them?
disaster that impacts the market?
Many of the factors that we previously
Yes to all of these questions.
used to predict or forecast rates are no
What is going to happen to rates
longer relevant. There are some tools
this year? I have no idea. But in the
out there to show what a rise in rates
moment you really need to answer the
may do to your buying power, or what
question, usually the market will help
the rates have done historically. This
to point you in the right direction.
may help with predictions and plan-
GILROY • MORGAN HILL • SAN MARTIN
JANUARY/FEBRUARY 2016
gmhtoday.com