Good Monday Morning!
As inflation continues to roar, the FED has continued to increase rates. Even though at last report, inflation subsided slightly, the FED has announced that they will continue to increase rates until inflation hits 2%. At last report the inflation rate had decreased into the high 7% range. We have a ways to go and this means the continuation of rate increases into the future. This is why, right now is a good time to purchase a home. Rates will not stay at the low level of today for long. There are also ways to get the rate lower than where it is currently. Home buyers can buy their rates down. In many cases during this slower market, home sellers may be willing to buy the mortgage rate down for the buyer. This is just one of several avenues that we are currently using to help buyers get into houmes today. If you are wanting to purchase a home in this market, contact us and we can help you explore some of these avenues. The following is a recent article from "Realtor.com" that talks about our current mortgage market.
The numbers: The housing sector continues to face headwinds.
The 30-year fixed-rate mortgage averaged 7.08% as of Nov. 10, according to data released by Freddie Mac on Thursday.
The 30-year was last at this level in mid-2002.
That’s up 13 basis points from the previous week—one basis point is equal to one hundredth of a percentage point, or 1% of 1%.
Last week, the 30-year was at 6.95%. Last year, the 30-year was averaging at 2.98%
The average rate on the 15-year mortgage rose to 6.38%.
Home sales have declined significantly and, as we approach year-end, they are not expected to improve,” he added.
The adjustable-rate mortgage averaged 6.06%, up from the prior week.
What are they saying? Some homebuyers are fed up waiting for rates to stabilize and are jumping in with 7% rates, an industry group said.
“Although mortgage rates remained above 7% last week, applications to buy a home increased for the first time in six weeks,” Bob Broeksmit, president and CEO of the Mortgage Bankers Association, said in a statement.
Still, “many prospective buyers are waiting for the volatility in mortgage rates to subside, as well as for a clearer picture of the economic outlook,” he added.
Mortgage demand overall continues to be weak, as refinances plunge, the MBA said on Wednesday.
The yield on the 10-year Treasury note dropped to 3.8% during the morning trading session on Thursday.
Have An Awesome Week!
Stay Healthy! Stay Safe! Remain Positive! Trust in God!
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