For the ninth time this year, mortgage rates have increased. If you have been following our blog, you are aware that the rates have been steadily dropping which is good news for would- be purchasers, would-be sellers, and people just looking to refinance at a better rate. An increase in the rate has slowed down refinancing, but there is no real cause for alarm at this juncture; mortgage rates are still close to the lowest they’ve been in 3 years (we should, however, keep an eye on how the Fed deals with the escalating tensions between the U.S. and China).
The 30-year fixed-rate mortgage (“FRM”) increased by .03% to 3.58%, while the 15-year FRM increased by .03% as well to 3.06%. Oddly, the steady decrease in rates hasn’t ramped up
the home buying market (this is odd because lower rates mean buyers can “afford” more, which typically drives the market); this is likely a result of decreasing confidence in the economy’s stability – something we see with the inverted yield curve.
There was some indication that the U.S. and China will step-down their retaliatory actions, which bolstered consumer confidence; if we stay the course, the summer months ought to be a good time for the housing market.
At the Chernov Team we understand that knowledge is power, and knowledge of how the market will behave in the near future is certainly powerful knowledge. At the Chernov Team we
know that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.