Apartment Loan rates have risen in the last month with rising US treasury rates. The ten year treasury is now at 3.40%, from its low near two percent a few months ago.
FHA 223 F rates have risen the least since they are wrapped with GNMA insurance and are rated AAA. FHA 223 F loan can still be locked below 5% for a 35 year loan.
FNMA and Freddie Mac rates have risen more since there is uncertainty of their future credit rating when the government stops backing them up. Currently large apartment loan rates are about 5.45% for Seven Years and about 5.90% for ten year loans.
FNMA small apartment loans are now running at close to 6% for ten years.
Several clients have reported bank quotes of 50% to 60% loan to value and twenty year amortizations, offered by several large Midwestern regional banks. The loan amount is often to low compared to the 80% of purchase allowed by FNMA and FHA.
1 comment:
This was kind of a bizarre year for the mortgage market. In the first half of the year, you had a decent number of home sales keeping mortgages for purchases stable, thanks to the home buyer credit. In the second half of the year, that changed as demand crumbled when the credit was withdrawn. At the same time, you had very low mortgage interest rates throughout much of the year cause a mini-refinancing boom. 2011 will look very different, as the housing demand continues to struggle and mortgage interest rates have begun rising.
home buyer
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