The Home Buyer's Korner

Information presented should be used for educational purposes only.

November 7th, 2014

Guy looking up in color

Average Mortgage Rates for Nov 06, 2014

rates

Mortgage rates under 4 percent were short lived and back to the highest level in a month.  If economic news from the U.S. remains positive they could edge ever higher.  The short drop a few weeks ago was due to concerns over global economic growth, but now seems like a distant memory, but we’ll take a moment to look back nonetheless.

Early October brought us average rate on the 30-year fixed conforming mortgage ($417,000 or less) below that psychologically significant 4 percent level. Today it’s back just above that at 4.02 percent.

While the drop itself wasn’t huge, it created a flurry of home refinancing activity with applications jumping more than 20 percent in just one week, according to the Mortgage Bankers Association.  There had been a common myth was that anyone who could benefit by refinancing did so over a year ago, when rates were in the lower 3 percent range.  

The drop in rates however did little to push potential home buyers off the fence. Purchase mortgage applications actually fell along with the lower average and then rose this week, after rates had begun to climb higher following the FOMC Statement released last week. Conventional wisdom is that only when mortgage rates rise do home buyers fear an interest rate surge and get off the fence or worry they missed the boat.   A monthly survey of real estate agents by Credit Suisse found the recent move in lower average rates didn’t drive demand, but could change over time if low mortgage rates persist. It’s worth noting that Wall Street had been forecasting for the past year that at the end of Quantitative Easing, which happened in October rates would be at 5 percent. That prediction didn’t pan out and may have pushed demand forward, which would explain why current low rates didn’t boost an increase in purchase mortgage applications.

Today’s home buyers aren’t about mortgage rates however; it’s all about price and supply and the two are inextricably linked.  Both have been moving more dramatically and home buyers are either having sticker shock or can’t find what they want.

As the housing recovery continues to pick up momentum would-be home buyers and seller need to keep in close contact with their real estate agent as prices and inventory are changing by the moment.

pmms_chart

HOME OWNERSHIP TOOLS

FHA 203K

Your Home Purchasing or Refinancing & Renovation Tool

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

FANNIE MAE HOMESTYLE

The Conventional Alternative to FHA 203K

Great for Real Estate Investors and Second Home Renovations

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

USDA RURAL DEVELOPMENT

Up to $10K for Home Improvements, Renovations or a Simple Remodel

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

A SIMPLE HOME SHOPPING INSPECTION TOOL

Organizing your home shopping experience affords a wise decision making process.

This simple home inspection tool makes your ultimate buying decision a smart one.

To print this document click on “Open in New Window” located at the lower right corner;

click on “File”; then click on “Print”. In the center of the screen you will have the option

to “Create A Printable PDF of the Presentation”.

JOIN OUR REAL ESTATE SOCIAL MEDIA NETWORK

The Home Buyer's Korner

Real Estate Marketing Blogs and Coaching

Short Sale Real Estate Agent Marketing Blogs & Coaching

Distressed-Real-Estate-Marketing-Blogs-Coaching Updated

Mortgage Lenders Social Media Marketing Blogs

Loan Officer Marketing Blogs and Coaching

General Contractors Renovation Network

LINKEDIN

Twitter

PINTEREST

Facebook Group 2

Join us at Real Estate Social

Comments are closed.