For the first time since late October mortgage rates top 4%! The average rate for a 30 year fixed rate mortgage is at 4.08%, this increase is another sign that the housing market may be starting to turn around. Industry analysts do expect mortgage rates to rise this year but the 30 year fixed rate they predict to be at most 4.5%. Even though the rates may be going up, they are still way below the 7.1% average from 1990 – 2010!
The best advice I can give anyone who is thinking of buying would be to get out there and buy in the near future. There is a shortage of homes for sale on the market which is also causing many multiple offer situations which drives up prices. If you combine the lack of inventory and the increase in interest rates, the window of opportunity to buy at a great price with a great rate is slowly beginning to close! If you are on the fence about buying, now is the time to get off!
According to the National Association of Realtors, the index of sales agreements rose 2 percent last month to 97 meaning that the number of contracts to buy homes is up. This is the highest level since April of 2010 which was the last month of the federal home buyer tax credit. A reading of 100 is considered to signal a healthy market.
These numbers are for signed contracts not for closed sales, so there is about a 2 month lag time from signing to closing but more people are buying!
Sales of previously owned homes were also at their highest levels since May 2010, first time home buyers are buying more homes, mortgage rates are extremely low and the supply of homes available is at a 7 yr low. All of these point to the start of a recovery for the housing industry, but a full recovery is still years away.
Once again the mortgage rates hit new lows, the 15 year fixed rate is the lowest since the Freddie Mac has been keeping track back in 1971. Because of the low rates, 8 out of 10 mortgage applications right now are for refinancing! The 30 year fixed rate is at 3.87% down from 4.81% just a year ago, the 15 year fixed rate is at 3.14%. Click here for the full article from Inman News.