The economy continued to show strong business activity and growth in employment which drove the 30-year fixed mortgage rate to a seven year high of 4.94 percent on national average– WE are still at 4.75%
Higher mortgage rates have led to a slowdown in national home price growth, and the price deceleration has been primarily concentrated in affluent coastal markets in California.If you are in an adjustable rate mortgage Lock in a fixed rate now.!
Sales of new homes are slowing and unsold inventory is rising for the first time in three years. With mortgage rates increasing affordability is becoming an issue and we may see a drop in the market valuations in spite of a growing economy!
After leveling off recent weeks, mortgage rates move up to reach a
new high last seen seven years ago.The 30-year fixed mortgage rate edged
up to 4.61 percent, which matches the highest level since May 19,
2011.Consumer spending and higher commodity prices caused bond markets
to increase and led to higher mortgage rates over the past week.While
this year’s higher mortgage rates have not caused much of an effect in the
strong demand for buying a home seen in most markets, inflationary pressures and
the prospect of rates approaching 5 percent could begin to hit the valuation of
home prices.Many people are refinancing to convert their
adjustable rate mortgage to a fixed wile rates are still low, get cash out for
hone improvements to there existing homes or paying off debt to free up cash
flow for other investments I would be happy to discuss any and all
options or concerns you may have.
OR Price your own
loan http://www.firstcaliforniafinancial.com/CaliforniaMortgageRateSheet and give me a call for a custom
government bond yields topped 3% for the first time in more than four years The
10-year yield is a barometer that influences borrowing costs for consumers,
corporations and state and local governments. Mortgage rates are tied to this
and have reached almost 4.5% see this article from Government backed funding
source. http://www.freddiemac.com/pmms/ great
My concern is that the Home affordability index will
lesson with higher rates = higher payments and the housing values will slow if
not even drop in value. This could trigger another financial situation as so
much of the economy is tied to housing.
Many people are refinancing to get cash out for
improvements to there existing homes rather than buying new ones or paying off
debt to free up cash flow for other investments or simply converting there
adjustable rate mortgage to a fixed wile rates are still low.
I would be happy to discuss any and all options or
concerns you may have.
OR Price your own
loan http://www.firstcaliforniafinancial.com/CaliforniaMortgageRateSheet and give me a call for a custom quote..
"I’VE FOUND A HOUSE THAT I REALLY WANT TO BUY, BUT THE AMOUNT I’M PRE-APPROVED FOR IS SLIGHTLY LESS THAN WHAT THE SELLER IS ASKING. DO I HAVE ANY OPTIONS? OR SHOULD I KEEP LOOKING?"
The answer to that depends on how much less you’re pre-approved for. If the home is truly out of your price range, you really should move on and look for a home that you can afford. However, if the difference between the seller’s asking price and what you’re approved for is a small amount, there are several possible ways to close that gap, including:
• Working with your lender to increase the amount you’re approved for.
• Putting down a larger down payment.
• Negotiating with the seller to lower the price.
Before you do anything else, though, you should talk to your broker. Although it may not always be feasible, some borrowers are able to get approved for a larger amount, especially if the difference between the pre-approval and the asking price is minimal. A pre-approval is not necessarily set in stone, so definitely touch base with your broker. Also, make sure you bring your real estate agent into the loop so that they’re aware of the situation.