Lower Mortgage Rates are giving house-hunters their best opportunity today to increase their buying power right now. That’s because rates have come down almost 1/2 percentage points since late mid-November. Therefore, given the strength of the economy, the big question is, “Will it last?”

We asked Mortgage Banker, Troy Bird with Guild Mortgage whether he sees this dip from future interest rate hikes lasting?

Troy: I don’t see it lasting but it is a nice dip right now for some buyers out there. If you’re looking to lock in an interest rate, it’s a great time to do that. We are seeing a window of opportunity for some buyers.

Troy: We’ll see some movement here in the first quarter, but what you’re losing in stocks, you’re going to gain in lower interest rates for your house.  Homeowners can lock in now. They’re going to see an open window right now that’s a great opportunity, especially if you are looking to refinance.

Todd: So what is your advice to homeowners right now?

 Troy: My advice is simple.

– Try to save up as much for a down payment as you can.

– Pay off your credit cards as much as you can to keep your debt low.

– There are lots of down-payment assistance programs, but if you have the cash to work with that’s even better. Keep your credit great.

– Get pre-qualified with a Mortgage banker before you meet up with a realtor and you start looking for a home.

Todd: Lastly, how important is it to have extra money in savings? When you go to get a loan, does the underwriter look at that?

Troy: For most loans, it’s great to have reserves. It is not required on all loans.