May 20, 2020 at 10:30am | Blair Schwisow
For Boise mortgage interest rate chroniclers, this month began with the culmination of a trend that’s
been playing out for quite some time. It’s “the other shoe” that finally dropped. The headlines confirmed
the numbers that government-owned mortgage backer Freddie Mac posted:

“Mortgage Rates Dip to New Record Low.”

The 3.23% national average on the 30-year fixed-rate hit was, literally, an all-time low. It
represented a drop of a tenth of a percent below the previous week’s mark (and nearly a full percentage
point below what had been posted a year earlier).

In other words, the come-hither phrase advertisers have been long spouting—"home loans near
historic lows”—was suddenly passé: rates were now surpassing historic lows! There were, however,
some caveats.

In order to take advantage of Boise mortgage rates at such eye-popping levels, sophisticated local
home loan and refi customers understood that a spotless credit history would be required. As Mortgage
News Daily put it, “the cost of imperfection remains high in the mortgage world.” MND Chief Operating
Officer Matthew Graham further quibbled that Freddie Mac’s calculation didn’t fully account for “all the
volatility,” nor did it recognize one rate posted in early March (since, for some reason, Freddie ignores
rates posted on Thursdays and Fridays).

But still, the main point was unarguable: Boise mortgage rates were unmatched bargains. Graham
noted one mortgage consultant’s advice, “Lock at the first opportunity!”

— — — —

On another front, a different home loan issue is worth noting. For existing mortgage holders wishing
to take advantage of the “forbearance of payments” component written into the government’s CARES
Act, there could be an under-publicized side effect. Although the law mandates that forestalled payments
cannot be reported as “late” on credit reports, that doesn’t mean they won’t be recorded at all. So,
although forbearance might not directly impact a borrower’s FICO score, it could lower the limits other
lenders offer. Since that would raise the borrower’s ‘debt-to-available credit’ ratio, that would impact
their FICO score—a clarification that should be publicized.

I’m always standing by to discuss any and all questions touching on Boise real estate matters. Do
call!

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