Curious about how mortgage rate changes may affect your home buying experience? Higher rates may result in adjustments needing to be made on the amount of loan you qualify for, so be sure to discuss your individual situation with a lender, so that you are aware of the options available for your home.
Recent rates released in the Primary Mortgage Market Survey(R) (PMMS®) continued to come in relatively high, due to market speculation that the Federal Reserve may reduce future bond purchases in response to June’s strong employment report.
According to Frank Nothaft, vice president and chief economist of Freddie Mac, “June’s strong employment led to more market speculation that the Federal Reserve will reduce future bond purchases causing bond yields to rise and mortgage rates followed.” Federal Reserve Chairman, Ben Bernanke announced this morning the Fed could reduce bond purchases later in 2013 if the economy holds steady.
- An average 4.51% with a .8 point was seen with the 30-year fixed-rate mortgage (FRM), an increase from the previous week’s 4.29% and well above last July’s 3.56%.
- The 15-year FRM rose to 3.53% with a 0.8 point, from 3.39% and the average of 2.86% in July 2012.
- Slight increases were seen on the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) as well, which averaged at 3.26% with a average 0.7 point, versus the 3.10% rate last week and 2.74% one year ago.
- Surprisingly, the 1-year Treasury-indexed ARM remained unchanged since last week, with an average 2.66% (average 0.5 point), which was very similar to the July 2012 rate of 2.69%.
I have spoken with prospective buyers that are getting spooked by the increase in rates. The thing to keep in mind is that the rates are still historically low. It remains a good time to buy. And if you’re ready to buy, you need to be ready to make a quick decision when you find a home you love. According to TREND MLS, inventory in Montgomery County PA is down and settled properties and prices are up, resulting in great properties selling FAST!
If you’re thinking of buying, or selling, and need to talk through this, I am here to help you. Feel free to give me a call at 215-327-9097 or fill out the contact form on my site.