The past half a dozen years or so
have been fairly hectic in the mortgage world and with the economy the way it
has been, that comes as no surprise. What else comes as no surprise is a
surprise in the mortgage world.
With changes always occurring and
nothing ever quite being the same, we believe it is important to keep home
buyers and home owners on top of all the changes, including those involving
interest rates.
What Freddie Says
Recently, Freddie Mac Homes
published a very interesting article, displaying survey results on mortgages
everywhere, including the Albuquerque area. The survey has concluded what some
of you may have already noticed and that is that mortgage interest rates are on
the rise.
However, while on their way towards
peaking as a recent high, the rates are still at an all-time low, continuing
what can definitely be considered a buyers-market.
What Changed?
There is whole lot of talk about
change going around these days, so what has changed in the housing markets and
why did it catch Freddie Mac’s eyes as well as our own? At the end of October,
interest rates were at an average of 3.41%, which was up from the previous week
that stood at 3.37%.
This was the average rate for a
30-year home loan. So the rates raised a mere fraction and still stayed at
these record lows. So what is the big deal? The fact that the rate rose at all
is actually a step in the right direction for the economy.
Other rises in mortgage rates
included the 15-year home loan rate, which was up from its 2.77% rate and the
previous 2.66% rate. Both the 5-year treasury index adjustable rate mortgage
loan and its one-year counterpart saw little to no change though technically
the 5-year went down a point.
A Reality Check
With interest rates mostly showing a
rise, you may be thinking that it is no good news for you, but when you think
about it, to have below 3% rates on 30-year loans would mean that our nation’s
economy would be worse off than it is now and that would mean fewer jobs and
all kinds of economic negativity.
At Indigo Mortgage, we believe in
getting people the lowest achievable interest rates for their financial
situation. While in this buyer’s market it has been easier to get lower rates
than usual, a turn in the economy for the better is worth a rise in interest
rates. Certainly, these interest rates are still low and provide entrance for
new home buyers or can help others refinance their loan! Ask us how!
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