Sharp Raise in Mortgage Rates – It’s Time to Buy!

Recently there has been a sharp incline in mortgage rates, causing many renters and prospective buyers to take a closer look into the market, fearing they might miss the best time to buy. As renters are getting nervous that home prices and rates will rise quickly, home buying has picked up.

According to a recent article, now is the best time to purchase a new home:

“Refinances dropped 12 percent last week, while mortgage applications to purchase a home rose 3 percent and are now up 14 percent from a year ago, according to the Mortgage Bankers Association.

“Rates rose in response to stronger economic data and an increasing chance that the Fed may soon begin to taper their asset purchases,” said the MBA’s Mike Fratantoni in a release.

The Federal Reserve has poured billions of dollars into the mortgage market since the housing crash began, pushing mortgage rates to record lows, but it can’t last forever. Recent remarks by Fed Chairman Ben Bernanke suggest the monthly mortgage market infusions may end sooner than later. That has pushed the rate on the 30 year fixed conventional mortgage to 3.90 percent, the highest level in a year and dangerously close to the emotional 4 percent barrier. This as home prices are jumping higher and faster than expected.

“It’s amazing to see the frenzied pick-up in home buying, as renters get nervous that both home prices and rates will rise quickly,” said Craig Strent, CEO of Maryland-based Apex Home Loans. “They are trying to catch the beginning of the curve here.”

Housing prices are up 10.2 percent nationally but will the trend be enough to drive the economy? The 30-year fixed mortgage hit a record low rate of 3.47 percent in December of last year. Even though it is still well below historical norms, this small rise is already taking its toll.”

It’s time to take the leap and purchase the home you’ve been dreaming of!

About Ashley Leigh

Ashley Leigh is one of the most successful real estate agents in the United States and founder of Linton Hall, Realtors®, the premier real estate company in Prince William County, Virginia. In his book Billion Dollar Agents, Steve Kantor featured Ashley for individually producing well over $2 Billion in career sales selling thousands of homes. Ashley Leigh's innovative marketing programs have been have been written about in Fortune magazine. Additionally, Ashley has been profiled in RISMedia’s Real Estate Magazine and Power Team Report and has been recognized by REALTOR Magazine as one of the Top Sales Agents in the U.S. The Wall Street Journal ranked Ashley as one of America’s Top 20 Realtors in the Nation for his sales production for several years. Connect with Ashley on Google+

Speak Your Mind

lintonhallrealtors 5 out of 5 based on 1 ratings.