Rates on the Rise!!
As many have been predicting, interest rates have begun to rise. The below article indicates such and while rates are still historically low, those great rates are slowly leaving us. Its been estimated that one year from now the mortgage payment on a $200k home will be $175.00 more just because of rising rates, not to mention rising home prices. National news media keeps talking about how soft the real estate market is, but remember, real estate is a very local business and in Utah we have a very good local market. While home prices above $450k are still soft, below $450k we are seeing price increases in many areas. It appears that we are at the bottom of the dip as prices and rates are now slowly heading up. For those who are waiting for the best time to purchase, that time is now! Also, there are currently a couple of very attractive mortgage plans out there that do not have the burden of mortgage insurance (mortgage insurance is currently a one percent add to your rate) and small down payment requirements. These programs come from some of our regional lenders and will not last forever as they are intended to help the local market, which they have done. I would be happy to explain these plans to any who call.
Mortgage Rates on the Rise
After being mostly at a standstill the past month, long and short-term mortgage rates were moving up this week, reports Freddie Mac in its weekly mortgage market survey. 'Mortgage rates followed Treasury yields higher over the holiday week but remain quite affordable by historical standards,” says Frank Nothaft, chief economist at Freddie Mac. “For instance, interest rates on all mortgage outstanding in the first quarter of this year averaged just under 6 percent. With today's rates, these home owners who have the ability to refinance could shave $169 per month in interest payments on a $200,000, 30-year fixed mortgage.'
A Closer Look at Rates
30-year fixed-rate mortgage: The most popular choice among home buyers inched up to 4.60 percent this week from 4.51 percent last week. A year ago at this time, the 30-year rate averaged 4.57 percent.
15-year fixed-rate mortgage: Averaged 3.75 percent, up from last week’s 3.69 percent average. Last year at this time, the 15-year fixed-rate mortgage averaged 4.07 percent.
Source: “30-Year Fixed-Rate Mortgage Rises to 4.60 Percent,” Freddie Mac
With over 25 years of sales experience I can negotiate the best possible price for your purchase or sale of a home. Negotiating is an art acquired over time that most have no clue about, but I apply my negotiation skills on every transaction. If I am privileged to assist you with your real estate needs you will see firsthand how I turn this transaction in your favor. Negotiators Rule the World!
For a FREE home evaluation or to discuss your real estate options simply contact me or leave your information and I'd be happy to call you and see what we can do for you.
Blog Archive2011-07-20 12:05:41
Rates on the Rise!!