Announcer:
4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management. Welcome back, David.
David Nelson:
Thanks, Brandy. Appreciate it.
Brandy Auterson-Hurst:
So, mortgage rates have been trending downward recently. What are you looking at in this area?
David Nelson:
Well, I know there’s a lot of people hoping that they continue down that path, but we’ve certainly seen interest rates of all kinds that have dropped. Probably beginning of summer was the start of that. The interesting thing about it is that historically you see mortgage rates and interest rates kind of move in sync, and if we were to look as far as at mortgage rates as far as historically compared to the 10-year, I’ve got a chart that’s going to illustrate that nicely.
Generally what we do is we see a spread of 1.75% between the 10-year rate and the 30-year mortgage rate. Right now, if you look to the far right, you see that that number is considerably higher, we’re at 2.6%. 2.6% basically translates into I think there’s a fair amount of room for interest rates to come down, and even come down if … interest rates as far as in government bonds don’t, I think we could still see this thing move downwards. So, we’re excited about that. I know a lot of folks out there as far as with mortgages, we get questions about that often. This is really good news, I think, coming down the pike.
Brandy Auterson-Hurst:
So, what does this mean for the economy and anyone who might be in the market for a new home?
David Nelson:
Well, I think from the economy perspective, this would be good news as far as for most individuals out there, again, that are looking at acquiring a mortgage, maybe buying a new home, maybe refinancing, this could be really some nice rates on the horizon.
Brandy Auterson-Hurst:
If you missed any of our discussion, we’ll make it available for you on ourquadcities.com.
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This video includes a paid appearance.