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!
These days there are a lot of potential home buyers that are not able to get financing to purchase a home. Many of these buyers have a great job, low or no debt but they have had a short sale, foreclosure or some other major financial event in their more recent past that is keeping them from qualifying for a mortgage. I work with several investors that are looking for buyers that want to purchase a home on a contract for deed. Most of them do require at least a 10% down payment. This is a great opportunity for those buyers to purchase a home, get back on their feet with their credit score and then get the mortgage they need down the road. If you or someone you know is interested in purchasing a home on a contract for deed, call or email me to discuss the options!
There has been a slight mortgage rate increase across the board this past week according to Freddie Mac. The slight rate increase has been due to the positive news about the job market. The 30 year fixed rate mortgage rate was up .04% from last week to 3.92% but that is still much lower than a year ago when it was at 4.76%. The fixed rate 15 year mortgage was at 3.16%, up from 3.13% last week but still down from the rate a year ago of 3.97%.
These days with so many homeowners owing more on their mortgage than their home is worth there has been a lot of cancellation of mortgage debt. There are several events that can trigger this cancellation, a short sale, a foreclosure or an agreement worked out with the bank so a homeowner can stay in their home but the bank reduces the amount of the mortgage. The big question that people in these situations have is whether or not the forgiven debt is taxable. For advice specific to your situation you should always consult a tax professional but for a quick overview the following article sums it all up pretty well. Click here for the article.