Taylor Homes knows that working with professionals is the best way to ensure the quality of our business. That’s why we work with other experts that help us to better the experience for our customers. One of these partnerships is with Premier Bank, our go-to for interest and mortgage information. We know these details can be a difficult and intimidating process of building your dream home – that’s why we have readily available contacts to help you through these decisions.
See the following update for December from our expert Market Manager, Diane Hance from Premier Bank. Pay close attention, as these updates are directly related to how building your home sooner, rather than later, could be the best move for you!
“Can you believe 2020 is almost over? Some would say: thank goodness. Interest rates have certainly seen their ups and downs throughout the year. 2020 will end with interest rates on the rise especially with news that a new stimulus bill will be passed before year’s end or in early 2021. Also news of a vaccine on the horizon for all Americans shades to higher rates as well for mid to late 2021 as the economy could be begin a sustainable recovery.
30-year rates as of today for existing homes are starting at 2.71 according to Freddie Mac’s website at https://www.freddiemac.com/pmms/. Construction rates with Premier have held steady with start rates as low as 3% in the last 30 days; today’s rates are starting at 3.25 as the 10-year Treasury has been on a cyclical trend upward since last week. Also be aware that many Fannie Mae and Freddie Mac conventional loans now have a delivery fee built in as they began charging a COVID adverse market risk fee on 12/1.
A driving factor to interest rates in 2021 will certainly be the unemployment rate as we move through a potential recovery. FocusEconomics Consensus Forecast panelists expect the unemployment rate to average 6.5% in 2021, which is down 0.3 percentage points from last month’s estimate, and 5.5% in 2022. Rates often follow the up and down trends of key economic factors such as this as well as GDP, Corporate Earnings, and Wall Street performance.
What is the takeaway? 2020 has been a tough year for many. Count your blessings: family, faith, friends, health, finances, colleagues. Maybe you have a new home being built with Taylor Homes right now?
Take the end of the year to review your overall financial health by reviewing your credit report, credit card balances, 401k and investments so you can bring your best financial self to the table in 2021! Then you will be prepared to take advantage of low rates to build with Taylor Homes next year when the time is right for you. Merry Christmas and Happy New Year from Premier Bank!”
– Diane Hance, Market Manager at Premier Bank
If you have any questions about mortgage or interest rates when building your new home, reach out to Diane today at 513-919-3705 or at DHance@yourpremierbank.com.