I’m just dropping a note to let people who are considering buying a home or who have friends who are considering a home purchase know that mortgage interest rates rocketed higher again this week. Bankrate, (Bankrate.com) a mortgage tracking company, showed that the average rate on a 30-year fixed mortgage hit its highest level since April 2010. That puts the average 30-year fixed mortgage rate at 5.05 percent, up from 4.81 percent a week ago. This week’s rate actually spiked to 5.23 percent before coming down a bit.
The more positive news we have about an economic recovery the higher the rates will go. That’s called inflation and it is inevitable. The higher the rate, the less you qualify for and the higher your monthly payment will be. By the way, even though it is important to get your loan application started as soon as possible, you cannot lock in an interest rate until you have a purchase contract signed by both the buyer and the seller.
So I am just giving everyone a heads up that if you are in a position to and think you will be buying a home soon, sooner is better than later. Now is the time to act. Get hold of your Realtor and start the process. It will be to your benefit.
Please feel free to call if you have any questions or I can be of help.