Higher Mortgage Rates

[samantha83]

Hi,

Mortgage rates continue to rise steadily with the 30-year FRM increasing by seven basis points to close at 6.45% and 5/1 ARM increasing by five basis points to close at 6.24%.

Though the economy is more buoyant, from all parameters it is apparent that inflation has not yet reached a point where it can be contained. The rate of growth is not evenly spread with some sectors faring better than the others.

One of the effects of an upward looking economy is reflected in the rise in mortgage rates. Nearly half of all mortgage applications are for refinancing, which continues to be a popular option. But an increase in activity in the housing sector can only be apparent once the existing inventories are cleared.

Studies indicate that mortgage rates may remain steady this week without any large increases.

Thanks and Regards
Rob Thomos

[admin]

With interest rates on an upward swing, now is an excellent time to buy... before the rates go up again. We are now in a buyers market. This has occurred because there was an overbuilding of new homes across the country. Simple supply and demand has kicked in.

While demand has gone down due to higher interest rates supply continued to increase. This has left buyers and dealers with a greater inventory of homes than the current demand has been consuming. But the surplus of homes seems to be starting to dwindle, as buyers make offers that sellers cant refuse. As this surplus gets smaller sellers will feel less pressure to sell.

The cost of building supplies is still going up and the cost to build a new home must follow this trend. Dont wait. This is probably the best time in recent history to follow through on any plans you may have to purchase a home.

Before you shop for a home you should know exactly how much mortgage money can you qualify for. Knowing exactly how much can you spend when you go shopping for your next home will help you to make realistic decisions, so your not looking at more home that you can afford, or setting your goals lower than you need to

Pre-qualifying for a loan is a very good idea. You can get exact amounts, including down payment and monthly payment quotes from multiple lenders. You can comparison shop for manufactured housing lenders not just in your city or state but across the country. Find the one that works best for you and lock in today's rates now! Then you can enjoy the advantage of shopping like a cash buyer and negotiating the best price for you next home.

You can get a free loan assessment on line HERE that considerably reduced paperwork, when you visit home sellers with your pre-qualification letter, in hand.