With interest rates changing so much the past few weeks, most home buyers and sellers are finding themselves on this merry-go-round with mixed feelings and questions. Should we move now or wait is probably a common question to anyone considering making a move right now.
Rates have nowhere to go but up. Analysts have been saying this for months now. So what’s that mean? According to Freddie Mac, mortgage rates rose last week. The average rate for a 30 year fixed rate mortgage moved to 4.51% from last week’s 4.29%. The average rate for a 15-year fixed rate mortgage rose from 3.39% to 3.53%.
According to Frank Nothaft, Vice President and Chief Economist with Freddie Mac, “June’s employment numbers which indicated a higher than expected 195,000 jobs added last month plus higher revisions for the previous two months, led to more market speculation that the Federal Reserve would reduce future bond purchases. That caused bond yields and mortgage rates to rise.”
Per Freddie Mac, the average 30-year fixed rate over the past 42 years was roughly 8.5%, so anything below 6% is a bargain.” It appears right now that rates of 6% or 7% won’t happen overnight. It could take a few years to reach that point.
All of this can be pretty confusing to consumers who are on the fence about buying and selling. The best thing anyone can do for themselves is get pre-qualified with a reputable mortgage lender. That way they can help guide this process and help with any confusion. NP Dodge is proud to work with First National Bank Home Mortgage.
Each NP Dodge office has a mortgage lender available to help with your home financing needs. Check current rates or you can apply for a home mortgage on our website, www.npdodge.com.