In general, we tell folks that Good News in the Economy translates to Bad News for Mortgage Interest Rates.
We don’t think the latest report that Home Sales rose to a five year high will do ANYTHING to make mortgage rates head HIGHER… or for that much they won’t do much to move them much lower. Meaning in this case, while you might think the two things are related (home sales and mortgage rates) they really aren’t.
Steady hiring, record-low mortgage rates and a tight supply of new and previously occupied homes available for sale have helped boost sales and prices in most markets. The biggest factor here is JOBS.
As people feel confident that they are going to have a job – they are getting more comfortable with moving OUT of their parents home, and getting a place of their own.
Fortunately, in NC (and the Raleigh area) we have TONS of jobs!
According to CoreLogic, house prices rose 7.4% for the 12 months ending 11/12 (6.7% excluding short sales), the best numbers since 5/06! With 30-year mortgage rates at 3.4%, this means that the real cost of financing a home is NEGATIVE 4%! That’s like getting paid 4%/year to buy a house. As a result, it’s not at all surprising that existing home sales and new residential construction are rapidly improving.
First Time Home Buyers in NC should especially be aware of the new program enhancements available. These down payment and credit underwriting changes (for the better) are available now to ANYONE who has not owned a primary residence in the past 3 years…
If you are thinking about taking advantage of the LOW cost of real estate and the LOW mortgage rates available – or suggestion is that you do something early this year. We don’t so much think that mortgage RATES will rise – but the cost of making a mortgage is definitely going up, and underwriting guidelines are getting tighter (thanks for Congress and the CFPB). The CHEAP money will definitely be NOW – not later this year.
Want to see how much you can qualify for, and get info on the BEST mortgage rates Available? Call Steve and Eleanor Thorne 919 649 5058 – find us on Facebook – add us to your Circles on Google + / we want to connect and find out how the housing market looks in YOUR corner of NC!