If you have been watching the real estate market and waiting to see what mortgage rates might do before buying a home, now might be the time to buy. We have seen mortgage rates on the slight increase throughout 2017. Overall, mortgage rates in 2017 have been higher than 2016 with most experts predicting steadily increasing rates throughout 2017. However, the latest reports are showing that mortgage rates have actually decreased this week.
Not only have mortgage rates decreased, but they are the lowest they have been since the election! Reuters reports on the drop in mortgage rates, “Interest rates on conforming 30-year fixed-rate mortgages fell to 4.14 percent, the lowest since the week of Nov. 11, from 4.17 percent the prior week. Conforming loans are those with balances of $424,100 or less which qualify for guarantees from federal mortgage agencies Fannie Mae and Freddie Mac.” If you have been looking for the right time to lock in your mortgage rate, or been considering refinancing, this is great news!
Housing inventory continues to remain low which can drive up the cost of a home. By keeping your mortgage rate as low as possible, homeowners are able to afford more. In light of the reports about falling mortgage rates, it should come as no surprise that mortgage applications are up! Reuters elaborates on the increase in mortgage applications, U.S. applications to buy a home reached their highest level in about seven years last week as mortgage rates fell to their lowest levels since late 2016, the Mortgage Bankers Association said on Wednesday. The Washington-based group’s seasonally adjusted index on mortgage requests for home purchases rose 10 percent to 261.9 in the week ended June 2. That was the highest since 263.6 in the week of May 2, 2010. The jump in purchase loan applications raised the prospects of a possible rebound in home sales, which have weakened the past couple of months due to tight inventories.” This is great news for both real estate agents and prospective home buyers. Real estate agents will have more options to show their clients, as well as more eager to buy clients. And, clients will be thrilled to have a more affordable mortgage so that they can more easily realize the American dream of owning a home. If you have been waiting for the right time to pull the trigger and get pre-approved for a mortgage, now is the time to lock in your rate!