With it being August there is ALOT that is ending and beginning. Summer is coming to an end, school is about to start along with that homes are selling like hot cakes! It is a great time to sell and buy but as a buyer you need be aware of the interest rates changes. See the below information to help direct your decision. I have also attached my newsletter FHFA Index Shows Mortgage Interest Rates Climbing in June Washington, DC – National data show interest rates on mortgages continued their upward trend. Contract mortgage interest rates increased from May to June—up 0.15 percent from May, according to an index of new mortgage contracts. According to the Federal Housing Finance Agency (FHFA), the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders index was 3.55 percent for loans closed in late June. The index is calculated using FHFA’s Monthly Interest Rate Survey. The contract rate on the composite of all mortgage loans was 3.55 percent, up 15 basis points from 3.40 in May. Interest rates are typically locked in 30-45 days before a loan is closed. Consequently, June data reflect market rates from mid-to-late May. The effective interest rate was 3.67 percent, up 10 basis points from 3.57 percent in May. The effective interest rate accounts for the addition of initial fees and charges over the life of the mortgage. FHFA’s interest rate survey shows the average interest rate on conventional, 30-year, fixed-rate mortgages of $417,000 or less was 3.76 in June, an increase of 18 basis points. The average loan amount for all loans was $282,400 in June up $1,800 from $280,600 in May. FHFA will release July index values August 29, 2013. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Economy Poised for a Stronger Second Half of 2013 Despite Rising Mortgage Rates, Housing Remains a Positive Contributor WASHINGTON, DC – The ongoing housing recovery coupled with improvement in both consumer confidence and the labor market are expected to boost economic growth in the second half of the year, according to Fannie Mae’s (FNMA/OTC) Economic & Strategic Research Group. The latest jobs report showed steady year-to-date job creation and measures of consumer confidence are at or near recovery highs. Furthermore, despite a sharp increase in mortgage rates during the past two months, home sales have held up and home prices have continued to post gains, helping to keep the economy on a positive—albeit modest—growth path in 2013. “We are keeping a very close eye on the effect of rising mortgage rates on the housing market and the economy, but our July forecast is little changed from last month,” said Fannie Mae Chief Economist Doug Duncan. “We continue to see growth in housing, partly due to an increase in existing home sales as buyers choose to act while rates remain near historic lows. Consumer attitudes are improving amid a strengthening employment sector and we should begin to see a moderate pickup in consumer spending. Overall, we expect economic growth to come in at 2.0 percent in 2013, but further momentum later this year should help carry growth in 2014 to an above-par pace of 2.6 percent, the strongest since 2005.” On the housing front, mortgage rates are expected to continue to rise gradually, averaging 4.7 percent in the fourth quarter of this year—about 40 basis points higher than the June forecast—but the forecast of home sales is little changed, with expectations of an 8.0 percent rise in 2013. However, while the surge in mortgage rates has not significantly hurt purchase mortgage applications, it has led to a marked decline in refinancing applications, which is expected to continue next year. Jessica Shaw Realtor® Keller Williams Realty phone: (951)575-5859 cell: (951)575-5859 Efax: (951)346-3674 Jessica@teamxlrealestate TeamXLRealEstate "Real Estate Starts Here"
Posted on: Thu, 01 Aug 2013 17:42:48 +0000
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