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What's going with mortgage rates right now? April 14, 2014

There are many decisions consumers make when buying or selling a home, such as when will be the right time to move and which loan is best for your financial goals. Even though long-term home mortgage loan interest rates are higher than the record lows seen in 2012, they still remain below historical levels and have been in a holding pattern for all of 2014.

Freddie Mac announced that 30-year fixed-rate mortgage averaged 4.41% in the week ending April 3, up from 4.4% last week. A 15-year fix averaged 3.47% this week, up from 3.42%. A one-year adjustable-rate averaged 2.4%, up from 2.44%.

It is important for buyers to understand their options.  Most analysts believe that interest rates will be .75%-1% higher this time next year so it is important to understand the massive impact that interest rates have on buying power and deciding when the best time is to buy and sell.

Prior to the most recent financial breakdown, mortgage interest rates hovered around 5.75%-6.5% (in the first graph), the red line shows the moment the financial markets collapsed). Due to government stimulus, interest rates were soaring downward and kept going down until early 2012 when the real estate market started to pick back up.

Since the market has turned and buyers are buying and sellers are selling, interest rates are starting to slowly rise again. As our economy picks up, the government will continue to pull back on the stimulus money, which will drive rates back up to where analysts believe will be around the 6% mark.
It is critical to understand the differences in mortgage payments at different interest rates.

On a 300k loan at a rate of 6% vs. the same at 4.5%, the monthly payment difference is $278.59 a month, which is $3,343.08 per year. Over a 30 year fixed-rate home mortgage loan, that is $100,282.40! It is important to educate people that money should be used for much more important things like funding college education, saving for retirement, or even buying an investment property or a second home, instead of wasting it on mortgage payments that could have and should have been lower.

Homebuyers need to understand all of their options to make a decision that best fits their financial and lifestyle needs. 

Original Article here


April 2014 Charlotte Realtor Real Estate Review April 30, 2014

According to mortgage buyer, Freddie Mac, home mortgage loan interest rates are still in a holding pattern as the Spring home-buying season begins. The average rate for the 30-year loan rose to 4.33% from 4.27% last week. The average for the 15-year mortgage increased to 3.39% from 3.33%.

Though interest rates haven't been budging much, there is definitely good news on housing -- pending sales of existing homes rose in March for the first time in nine months. The National Association of Realtors; index of pending home sales, which is based on contract signings, rose 3.4 points to 97.4 in March. However, that's still nearly 8 points below where it was a year earlier. Pending home sales are strongest in the South, where the index gained 5.6 points to hit 112.7.

Lawrence Yun, chief economist for the National Association of Realtors' said the index's increase was due to the end of "a dismal winter." Yun said, "More buyers got an opportunity to look at homes last month and are beginning to make contract offers. Sales activity is expected to steadily pick up as more inventory reaches the market, and from ongoing job creation in the economy."

Homebuyers need to understand all of their options to make a decision that best fits their financial and lifestyle needs. With lower inventory but a high demand for homes, we are seeing a lot of competition between buyers. It is crucial for sellers to know that NOW is the time to list their house as well as alerting buyers that they can have a significant leg up on the buying competition!

You can trust me to make your home loan as stress-free as possible. Call me today to get started or schedule an appointment to really look at your financial plans and help you make the best home loan decision, so I can advise you on your path toward ownership. Call me anytime or simply fill out my online application to get started.

Original article here