Why are Reno Mortgage rates not going down?

Let me paint you a little picture.  Let’s say somebody comes to you and says, “Hey how would you like a nice 6% investment on your money?” But next year your money is only worth 75 cents on the dollar, meaning the value of the asset that your investment was tied to has gone down in value and or the very qualified borrower of the money has lost his job and cannot sell his home for enough to pay off the mortgage (short sale). Bad things are happening to good people right now and it cannot be helped until prices stop falling.

There are too many variables out there right now that is scaring investors into investing in mortgage backed securities. Rates right now should be in the 5-5.5% range but because of the added risk investors are building in a 1% risk factor because of the uncertainty of the Real estate market.

 

dhughes@dicksonrealty.com

www.Homes-Reno.com

1-800-692-1193

 

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