How many of you have been watching the mortgage rates? If you have, you know that for the past seven weeks rates have steadily increased. This week they unexpectedly took a slight dip. Although forecasters predict they will surge next week.
This week’s rate was 3.93% on a 30-year fixed loan and 3.04% on a 15-year fixed. While these rates are still incredibly low they are the highest we have seen since April of 2012.
Fed Chairman Ben Bernanke suggests that the housing market has improved enough to withstand rate increases. Pre-owned home sales are at the highest levels since November 2009. New mortgage demand has not decreased in the past seven weeks with the steady rate increases, but refinancing demand has subsided some.
Do not let the rate increases scare you into holding off on your home search. Rates are still at historic lows. Mortgage rates hovering around 4% are exceptional deals for home buyers. Take a few minutes to see what is on the market in Nashville. There are some great houses out there. Give me a call, I would love to help you find your next home!