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