With the news on the improvement signs in the job market, and the increase in the home prices, the mortgage rates too are on an upward movement. Though, the mortgage rates have been really low in the last few months, market research shows that these have started to inch upwards. There was quite a significant change in the rates in the very first week of August. So, if you are planning to buy a home, it would be wise of you to be aware of the current market condition.
Current changes in the mortgage market
Though in the last month itself, the mortgage rates were historically low, the rates with regards to the fixed mortgages rose slightly this month. As per the mortgage buyers, like that of Freddie Mac, the rates on the mortgages, especially the 30 year fixed rate ones, rose from 3.49% to 3.55% to 3.59%, on a gradual basis. Though, in the second and the third week of July, the rate had fallen to 3.49, the advent of August brought in new rates.
However, in comparison to the 30 year mortgage, the interest rates with regards to the 15 year fixed rate ones raised by only 0.1. That is, last month the rate was 2.80 and 2.83, but it rose to 2.84%.
This increase in the interest rates, brings up the speculations on various positive factors. These are the debt relief strategies which Europe is following, increase in the confidence of the U.S. consumers in the month of July. In addition to this, there are also reports which show that the home prices are seeing a steady rise. This data has also been put forward by Frank Nothaft, the chief economist of Freddie Mac. According to him, "Recent announcements of additional debt relief for the Eurozone and mixed domestic economic indicators added upward pressure on Treasury yields as well as mortgage rates this week."
Though the mortgage market and the real estate market have been rolling out mixed bag of news on housing, it cannot be denied that the real estate market is showing signs of recovery. The prices of the homes or the properties are on the upswing. In the month of May, it being the fourth consecutive month, home prices climbed by quite a few points. This report has been forwarded by S&P Case-Shiller 20-city home-price index.
However, still now, buying has the upper-hand over renting. In addition, though the mortgage rates have raised slightly, according to Greg McBride, a financial analyst, the low rates which have been dominating the mortgage market, are still going to stick around. So, if you are still unsure regarding home buying or taking out a second mortgage or may be refinancing, it is high time that you do so. Calculate your affordability, and compare different mortgage offers, to clinch the best deal.