Average Mortgage Rates Eased Lower + Home Prices UP!

Here is the gist of it: Freddie Mac says that for the second week in a row, the average fixed mortgage rates have eased up.  What does that mean? Well, the 30-year FRM averaged 4.31% as of July 25th, which is down from 4.37% the week before.

Even though we were looking much better this time last year with a cool 3.49% for the 30-year, the current 4.31% isn't that bad!

Yes, the economists have been concerned about the recovery of the housing  market slowing down after its been rapidly improving over the past year. However, sales for existing homes in June reached the second-highest level that its been at since November 2009, and new home sales are now as strong as they've been since May 2008.

What does that mean? People are still buying and selling houses.

There is currently a low inventory of homes available to purchase which causes housing prices to rise.  This is good if you're trying to sell a house because your home is a hot commodity and you'll get a prettier penny for it than you would have a year ago.

If you're looking to buy, you'll need to be very careful and do your research. Hunting for the perfect home is hard in and of itself, but now you've got to be quick since homes are in hot demand, and the prices are higher than they were previously.

Yes, the mortgage rates are also higher than they were but you know what? If you look at the history of mortgage rates, you'll see that they have always averaged a bit higher than 4.31%.  You could always refinance again in the future if the rates decide to drop to the mid-3% again.

Bottom line: If you need a new home, don't hesitate to buy one just because the rates are a teeny bit higher than they were before. Remember, they just dropped a bit since last week! They could drop again next week! Even if they go back up, don't put your life on hold because of statistics and numbers.

Call us if you need help applying for a mortgage for your new home! We work quickly! :)
888-883-5252

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How Are The Mortgage Rates Doing?

Two weeks ago, the average fixed mortgage rates saw their highest levels since mid-2011. This has made homebuyers weary of making their move. However, there is some good news. Last week, Freddie Mac's Primary Mortgage Market Survey said that the 30-year rates have dropped back down to 4.29 percent (from 4.46 two weeks ago.)  We realize these aren't ideal considering last year they were at 3.62 percent.

Over the Fourth of July weekend,,the rates fell due to an ease of market concerns about the Federal Reserve's pullback in bond purchases.  It is important to remember that even though rates are higher now than they have been in the past year, these rates are still low by historical standards. Even in the 4th percentile, we should continue to see people benefiting from housing affordability and the housing market will continue to recover.

Despite the rates being a bit higher, pending home sales have gone up by 6.7% in May, which is the strongest pace we've seen in over six years.

If you are in the market for a house and have questions, please call us at 888-883-5252 or 877-828-8851. We'd love to help ease your concerns and get your application started!

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Rates Rising: Lock It In While You Can!

After weeks of falling, the mortgage rates have recently rose to their highest point in six weeks. Previously pressing to set record-lows, the current mortgage rates for a 30-year mortgage are averaging 3.51 percent.  The average 15-year rate also increased to 2.69 percent.

Earlier this month, the 15-year rate set a record-low at 2.56 percent. Last November saw the lowest rate for a 30-year mortgage with an average of 3.31 percent. Most recently, we saw 3.35 percent.

With the rates steadily climbing again, we tend to encourage borrowers to lock in these somewhat low rates while they can. There is no guarantee that they will drop again since the housing market is recovering and home prices are increasing. There is an increased demand for homes due to a tight inventory. The whole market seems to be growing more and more competitive. Home buying season has been strong and moderately priced homes are selling fast!

California currently holds 8 out of 10 spots on the list of markets with the largest increase in median list price throughout the country. This means that these markets were hit the hardest by the crisis and are in turn rebounding the highest now that the housing recovering is gaining momentum.

Visit the links on the right side of this page to find the right company for you.

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Housing Market Outlook for 2013

After a rough few years, the housing market and the economy are finally on an upward trend! Housing starts, prices and confidence are showing better figures everyday. Of course there are always ups and downs, and while some investors are still being cautious about jumping into the market, 2013 is promising to bring a more competitive market for homebuyers.  With the housing inventory as low as it is, experts wouldn't be surprised if bidding wars break out among investors and homebuyers. It is expected that homes will sell fast in 2013 as long as they are priced right. It is a homesellers market!

When the market was experiencing buying dry spells during the recession, the Federal Reserve dropped interest rates to record-lows in order to lure buyers. Now that things are steadily improving, the rates may begin to slowly climb upward, however experts are not expecting significant jumps. Some banks have already vowed not to touch the interest rates until the unemployment rate drops.  Even if mortgage rates do inch upward, they are expected to remain around 4% which is still remarkably low compared to years past.

Mortgage rules are always being amended in order to prevent fraud and reckless lending to the underqualified. The Consumer Financial Protection Bureau recently issued new mortgage standards with new criteria for qualifying for a loan. Some of the new rules state that a qualified mortgage cannot include risky features like interest-only payments or negative-amortization payments. Loans cannot have fees and points above 3% of the total mortgage, and the total debt-to-income ratio must be limited to 43%. Some experts are concerned that these tighter rules may restrict credit and discourage lower-income homebuyers. Additionally, there are new rules designed to stop over-borrowing. Some fear that this could make the process longer for potential homebuyers or even prevent some from qualifying. Those looking to purchase a home should begin the mortgage lending process at least three months in advance since some of the new lending standards may cause time delays.

The new rules aside, 2013 is expected to remain in this upward trajectory. Home pricing indexes started to rise last year and promise that home prices will continue to increase. This will encourage homeowners to want to sell again, and cause homebuyers to jump in quickly before the prices rise too high. It is expected that home prices will jump 6% this year.

We already mentioned that housing inventories are low. They've been steadily falling since 2007. If the inventory remains at a below-normal level, some fear that this will hold back home sales and impede the market's recovery. However, rising home prices should help to increase inventories. Housing construction is up 60% in the last two years as well, however it is still far from where it should be. It is estimated that roughly 1.5 million units need to be built every year to keep up with housing demands. Last year, only 600,000 were built, and experts are expecting 750,000 to be constructed in 2013. With high building-material costs and a lack of skilled laborers, builders confidence is moderate, but there is potential for this to all improve this year.

As far as foreclosures go, there are still more than a million homes in the process but the overall crisis is nearly at an end. As the market improves, more and more people are taking advantage of foreclosures and short sales. Some investors are even buying homes at 50 cents on the dollar, renovating them, and putting them back out there which helps to stimulate the market.

2012 saw a refinancing boom because of low interest rates, but 2013 is expected to slow. Refinancing helps to boost the economy by reducing payments so homeowners have more money to throw toward consumerism. Refinancing will only continue booming as it did in 2012 if eligibility requirements expand or if rates drop further. However, borrowers looking to refinance should start the process now!

Overall, the complexities of the housing market are very reliant on a tug and pull system. Something increases and causes something else to decrease, but the balance is improving and 2013 is expected to be a strong year for all involved.

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Mortgage Rates Drop in April

According to Freddie Mac's most recent Primary Mortgage Market Survey, the average fixed mortgage rate has moved lower for the 3rd consecutive week. The 30-year fixed-rate mortgage averaged 3.41 percent with an average 0.7 point, which is down from 3.90 percent this time last year. As the housing market continued to recover, many people are taking advantage of these low rates by refinancing their current mortgages.

Some people opt to refinance their long-term mortgage to a shorter-term mortgage. The 15-year fixed-rate mortgage averaged at 2.64 percent with an average 0.7 point, down from 3.13 percent last year.

The Survey also reported that consumer spending was weaker during the week ending April 18th. Some economists believe that this weakness in retail sales lead to the mortgage rates dropping lower this week. This is the second time in three months that retail sales have taken a hit. Also, the Consumer Sentiment Index dropped by 6.3 points in April. It is now sitting at 72.3 which is the lowest it has been since July 2012.

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Rate Update: Near Record Lows

According to Freddie Mac's latest Primary Mortgage Market Survey (PMMS), the mortgage rates remain "little changed and near record lows this week amid indicators of stronger economic growth and signs of tame inflation," said Frank Nothaft, vice president of Freddie Mac.

The 30-year fixed-rate mortgage averaged at 3.34% for the week ending December 6, 2012. Because the mortgage rates have remained steady, the economy is getting a chance to recover.  There has been growth in fixed residential investment, residential construction, and pending home sales. "The housing market is aiding in this recovery," said Nothaft.

If you are interested in buying a house or refinancing your home, the near record-low mortgage rates are still attractive! Home affordability is high and it is a good time to buy! Call Quest Loans to get started with your new loan or refinancing! We also specialize in FHA loans and HARP loans. 888-883-5252.

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Shorter-Term Refinancing to Prep for Mortgage-Free Retirement

The newest trend in the home-buying game is refinancing into 15-year loans. More homeowners than ever are going down this route due to mortgage rates consistently falling to record lows. According to Freddie Mac's most recent mortgage rate survey, the 30-year fixed-rate loan averaged at 3.75% which is down from 3.78% last week. On that note, the 15-year fixed loan's average is currently at 2.97%, down from 3.04% a week ago. Unfortunately, most of the homeowners who are able to benefit from the low refinancing rates in this troubled housing market are those who have significant home equity. Many homeowners are considering shorter-term loans so they can have the payoff coincide with their retirement plans. Despite having to pay more per month for these shorter-term loans, having their homes paid in full when retirement comes around would be ideal for any homeowner. Those that are able to do this have statistically been people in their 40s and 50s whose incomes now allow them to pay off more principal every month. If you are interested in refinancing your home to take advantage of these great rates, Quest Loans can set you up with a professional lender today! Call 1-888-883-5252.

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New Record Low Rates

New Record Low Rates! The average fixed mortgage rate found new record lows, as the 30-year fixed rate mortgage averaged 3.84 percent, down from last week when it averaged 3.88 percent. Last year at this time, the 30-year fixed rate averaged 4.71 percent. The 15-year fixed rate mortgage this week averaged 3.07 percent, down from last week when it averaged 3.12 percent. A year ago around this time, the 15 year fixed rate mortgage averaged 3.89 percent.

"Signs of slowing economic growth and inflation remaining subdued allowed yields on Treasury bonds to ease somewhat and brought most mortgage rates to new all-time record lows this week," said Frank Nothaft, the vice president and chief economist of Freddie Mac. "Real Gross Domestic Product rose at an annualized rate of 2.2 percent in the first quarter of this year, down from the previous quarter of 3.0 percent and below the market consensus forecast of 2.5 percent. In addition, the 12-month growth in the core price index of personal consumption expenditures was 2.0 percent in March which matches the Federal Reserve's implied inflation target."

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Lack of Job Growth leads to Lower Mortgage Rates

The recent release of the Employment Situation Report showed that the labor market only created 120,000 new jobs, a number that falls short of the expected 200,000 new jobs. Because this report was much weaker than expected, the mortgage interest rates have fallen a bit lower. Typically, whenever there is a blow to job growth, or any other negative economic news occurs, it tends to be good news for mortgage rates which will go down in response. A strong economy usually leads to higher interest rates. Right now, most lenders are seeing the best and lowest interest rates of the month. That indicates rates being lower than 4.0% in most areas, averaging around 3.75%.

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Mortgage Rates Rise Above 4%

According to Freddie Mac, the 30-year fixed-rate mortgage has risen above 4% for the first time since October. Last year, the rate was averaging 4.81%; right now it is at 4.08%. The rates are thought to be rising as a sign of economic growth. It was the Federal Reserve that helped to push the rates down to record-low levels in the recent past.

U.S. Treasury bond yields have been increasing lately. However, consumers have been able to reduce their debt burdens quite a bit overall. The economy is finally beginning to stabilize.

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