With housing prices potentially on the rise, consumers could consider whether now might be a good time to seize the opportunity to get a VA loan while interest rates are still low.
Salt Lake City, Utah (PRWEB) June 28, 2013
iFreedom Direct®, a top-ranked national VA lender in terms of volume, reports that home prices and interest rates are up. According to the S&P/Case-Shiller Home Price Indices, housing prices have increased 7.3% in Q4 2012 from the previous year. And, the 10- and 20- city composites used to indicate national trends show annual increases of 5.9% and 6.8%.
New York was the only city of the 20 composite cities to show an annual decrease, though it was just .5%. Two housing markets that have been struggling to recover since 2006 from the depressed effects of excess bank-owned properties have made a strong comeback in 2012: Las Vegas and Phoenix report two of the largest annual increases of 12.9% and 23%.
In a recent press release by the S&P, Chairman of the index committee at S&P Indices, David Blitzer suggested that the housing and residential construction led the growth in the economy in 2012. He also explained an interesting movement in housing prices from quarter to quarter that helped make up the annual increase. Prices were at their lowest in the first quarter, then surged in the second and third quarters and fell a bit in the fourth. This pattern may mean that, though housing prices are rising, it’s possible we’ve already seen the most dramatic rise. This is speculative though. It is hard to know how the market will move, or if past movements will predict future changes. But, Blitzer advised that these year-over-year increases are a sign of sustained economic improvement.
To add to the economic change, mortgage interest rates may be rising. According to a release by Freddie Mac, the all-time record low for the average 30-year fixed mortgage was 3.31% set November 21, 2012. On January 10, 2013 the rate averaged 3.40%. Today, the average rate is up to 4.58%. iFreedom Direct’s Veteran Advocate, retired U.S. Major Tim Lewis, says, “With housing prices potentially on the rise, consumers could consider whether now might be a good time to seize the opportunity to get a VA loan while interest rates are still low.”
iFreedom Direct® is offering VA-eligible borrowers federally-backed purchase and refinance loans with up to 100% financing and no private mortgage insurance. The professionals there have served military members with government-backed home financing since 1996. iFreedom Direct® provides VA-backed mortgages in almost every state in the U.S.
Veterans’ mortgages are available to current and former servicemembers who complete the required duration and character of service, and qualify with income and credit. For more information about VA loans, visit http://www.directvaloans.com.