February 6th, 2017 8:24 AM by Richard T. Cirelli
that the initital post-election shock is over, what are rates doing?
You'll recall that we had an immediate .75% rise in mortgage
rates following the presidential election. Optimism over the
expectation of a stronger Trump-led economy, higher inflation, the
assumption that the Fed may raise the Federal Funds Rate three times in
2017 and a super-strong positive reaction in the stock market all led to
But, as with most news events, the initial reaction was an over-reaction
and the markets seem to be settling down. Mortgage rates have come
down about .25% and the market seems to have adjusted to what will
probably be a mortgage rate range in the low 4% area for the next few
Here's a look at the trend of rates for the past 12 months.
Fannie Mae's chief economist, Doug
Duncan, says that rising interest rates will not stop home prices from
increasing. Duncan claims that as long a income is growing,
home prices will grow, irrespective of interest rates.
Retirees Shouldn't Overlook Reverse Mortgages
Buying a new home with a reverse
mortgage is an often overlooked strategy by retirees who could
potentially benefit from borrowing against their home equity instead of
raiding their savings to cover the purchase price with a traditional
mortgage, according to a recent article from U.S. News & World
Many consumers, and even real estate agents, are unaware of the program
or describe reverse mortgages as being useful only for those who cannot
get a regular mortgage on thier own. For retirees who want to
remain homeowners, but not in thier current homes, the article notes that
a Home Equity Conversion Mortgage, i.e., Reverse Mortgage, may help ease
the financial pain of the purchase.
originating Reverse Mortgages for 12 years now. I've seen lots fo
changes in the program, particularly in recent years, and the most recent
changes have been to the benefit of the borrower. Financial advisors have
embraced the product as an excellent financial planning tool
now. Please give me a call to learn more.