As the U.S. begins its slow march up and out of the recession (knock on wood), and housing conditions continual to improve, the interest rates on home mortgages are still hovering near all-time low records. Wouldn’t you think that if the housing market was on the upswing, mortgage rates would increase as well? That’s what I thought, but apparently there is a lot more that goes into it. If you have any interest in the housing market at all, or especially if you are considering taking advantage of the ultra-low rates for buying or refinancing a home, I highly recommend you give the following article a read. Amy Hoak of MarketWatch writes:
“Glimmers of hope in the housing market suggest a turnaround is near, with statistics showing stabilizing home prices and an increasing number of home sales.
Yet even as housing conditions improve, mortgage interest rates remain near record-low levels.
Rates on a 30-year fixed-rate mortgage averaged 3.71% for the week ending June 14, according to Freddie Mac’s weekly survey of conforming rates. Before that week, rates had broken record lows for six weeks in a row.
It’s a situation that seems to defy supply-and-demand logic: If there’s more demand in the housing market, wouldn’t the cost of borrowing funds to buy a home be on the rise?
As Hoak points out at the end of the article, sooner or later rates will begin climbing again and it doesn’t seem like anyone is sure exactly when. So if you are considering a refinance or home purchase, ain’t no time like the present friends! Just make sure to do your homework, polish up your credit score, and adopt a “buyer beware” mentality; i.e. research, research, research!