Mortgage rates even higher this week

Mortgage rates even higher this week

Rising mortgage rates are typically a good sign of a healthy and recovering economy that nobody really wants to see the interest rates too high. Typically, anything under 5% is considered a very profitable rate and will allow many people to buy a home that could not afford the same home if the interest rates were 7% or higher. Simply adding 1% onto a mortgage rate can add several hundred dollars onto the monthly mortgage payment which may put many buyers out of the realm of possibility for certain homes.

According to realtor.com, fixed rate mortgages rose slightly this week, with further increases predicted in the short term. This followed a two-week downturn in which key rates hit their lowest level since June. According to Freddie Mac, the average rate on a 30 year mortgage increased .06% and is now trending at 4.16%. Although this isn’t a dramatic increase, it still shows signs of a steadily increasing rate over the next projected months. At a glance, a year ago, the average rate on a 30 year fixed mortgage was just 3.4%.

Jumbo mortgages are also seeing lower interest rates which is surprising. Typically larger mortgages require more interest rates that lenders are finding less risk in borrowers that can afford a jumbo mortgage therefore rewarding them with lower interest rates. However, the interest rate is no more than a point to 5% or less but that can make quite a difference on a home loan over $500,000.

Loans previously dipped in October following the conclusion of the federal government shutdown. We are now seeing repercussions of that shut down within lenders, banks and in skittish home buyers. The confidence level and consumer support has waned slightly since the shutdown and there are fewer homebuyers willing to pull the trigger on new loans.

So what does all this mean? Since things are going fairly well right now, new subdivisions are developing at a rapid rate around the Southwest Florida area it might be a good idea to cash in on a lower interest rate before they get too high. If you’re considering buying within the next six months anyhow, chances are your lowest interest rate will be now.

Your Naples Park Realtor®

At Domain Realty we specialize in helping folks buy and sell real estate, condominiums, attached villas and single-family homes in the Naples Park real estate region. Not only do we know the real estate but we know the area as well and can help you make an informed decision on your next home purchase, price your home correctly to sell, or answer any of your questions on Naples Park. Call our office today to learn more or to speak with a Naples Park Realtor® immediately.

The Domain Group @ Downing Frye Realty
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