Don’t let negative articles like this frustrate you. Is it really that big of deal that rates on 30-year fixed rate mortgage surged a tenth of a percentage point? No. It doesn’t affect you or your business at all. There is so much negativity in the market and it tends to wear on investors and put doubts in their minds if they should even be looking into real estate right now at all. It is always important to understand what the report is actually saying and determine if it affects what you are doing.
As investors, let’s focus on what we can do, let’s focus on the positives in the market and go out and make it happen.
NEW YORK (CNNMoney.com) — Rates on 30-year fixed mortgages have surged a tenth of a percentage point to a 9-month high on growing concerns about inflation, mortgage backer Freddie Mac said Thursday.
Freddie Mac (FRE, Fortune 500) said 30-year fixed-rate mortgages averaged 6.42% with an average of 0.7 point in the week ending Thursday, up from 6.32% last week. Last year at this time, the 30-year loan averaged 6.69%.
The last time the 30-year fixed rate mortgage was higher was the week ended Sept. 6, when it averaged 6.46%, according to Eileen B. Fitzpatrick, a Freddie Mac spokeswoman.
While inflationary pressure is pushing interest rates higher, it’s also pushing buyers out of the market and home prices down, said Gumbinger.
“Interest rates were about this level – give or take – last year, but home prices were considerably higher,” he said. “Rates may not be lower, but your home prices may be lower.”
Posted by Carter Brown
No comments yet.