We’re seeing a tug of war happen as the fixed income market flashes warning signs while the equities market continues to march higher with optimism. The data suggests the economy is weakening but is still on very solid ground with high consumer confidence and a strong labor market. Closer to home, the housing market continues to slowly improve and gain momentum as we head into the second half of the year, which is good news and should keep the economy growing.
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