Timings everything, now’s the time. Mortgage Interests rates are on the rise! The main reason for the increase is simple; the economy is recovering and picking up momentum. The stock market is strong and bonds are no longer in favor, creating an environment of higher mortgage interest rates. According to Freddie Mac, mortgage rates have hit a six month high.
There is no question, millions of homeowners have been able to take advantage of the historic low interest rates. It’s true, the main source of mortgage loans have been refinances over that last few years. According to the Mortgage Bankers Association, a little over 70% of total mortgage activity have been refinances. But those numbers are changing. Home sales last year significantly rebounded, as well as new construction starts. Buyers who have been sitting on the sidelines are now entering back into the market. Quality listings are quickly replacing the previous foreclosure inventory. Boomerang Buyers, consumers who had previously lost a home at the start of The Great Recession, are now in a position to enter back into the housing market. it is estimated that 1.5 million of them will be eligible for loans by 2014. Business and factories are borrowing money at almost 12.5% above last year which points a better job market and hopefully higher wages in the near future. And don’t forget one other thing, rising home prices. According to S&P Case-Shiller home prices rose 7.3% in 2012.
Here’s the bottom line, expanding economy + rising home prices + rising mortgage interest rates = time to buy.
Timings everything, now’s the time.
Mortgage Investors Group understands there are a lot of choices when it comes to financing the purchase of a new home or refinancing an existing one. Our licensed and experienced loan officers are here to help you gain a better understanding of those options and answer your questions about the loan process, qualifying and the different features of each loan program. We offer everything from conventional mortgages to government loans.
Call us today and take advantage of these incredible market conditions!