I have been following the mortgage rates throughout the past year and making periodic posts here on my blog in order to inform you of the incredible opportunity to obtain a mortgage at such a low rate. I also have been mentioning that these rates, although magnificent, will not remain this low forever. The mortgage rates have been hovering around 3.5% for quite some time and I had estimated an increase to 4% by the end of the year based on the reports I had been reading. However, it seems the mortgage rates began the up-swing earlier than I expected, moving much closer to 4% and also obtaining the highest levels in a years time; according to Freddie Mac's weekly mortgage market survey. The 30-year fixed rate mortgage, which is the most popular choice among home buyers, has jumped nearly half a percentage point since the beginning of this month. The mortgage rates went from 3.35 percent to 3.81 percent just this week.
"Fixed mortgage rates followed long-term government bond yields higher, following a growing market sentiment that the Federal Reserve may lessen its accommodative policy stance,” says Frank Nothaft, Freddie Mac’s chief economist. “Improving economic data may have encouraged those views.”
MY ADVICE!!!
Although the mortgage rates are on the up-swing, we NEED to remember that, historically, the mortgages rates are still tremendously low. Personally, I have not experienced a market with very HIGH mortgages rates, therefore I will throw in some advice from my Broker who has been in Real Estate for almost 30 years, "anything under 7% is a very good position to be in." Therefore, we are still in a good position to obtain a mortgage, if anything this is just a sign that you NEED to make a move now in order to lock in a great rate for your future. The rates could take another dip down to 3.5 or they could jump to 4.5 but you cannot base your future on an assumption. If this is the time to buy for you then, as they say, strike while the irons hot!
Best of luck with your home searches and if I can be of assistance (which I know I could be) then please do not hesitate to contact me. I am available to answer any questions you may have.
