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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- 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