Chicago, IL (PRWEB) September 06, 2013
While mortgage rates keep trending higher, the prospects for both homebuyers to obtain a low rate mortgage and homeowners to refinance seems glim. Peoples Home Equity wants its prospective readers to know that all is still OK.
With both home prices due on tight real-estate inventories and interest rates rising on an improving economy, it seems like first-time homebuyers cannot find a bargain on a house or home loan. However, according to the Wall-Street Journal, the interest rate on a jumbo mortgage was lower than a 30-year fixed loan as recorded on August 30th. The Vice President of Wells Fargo said: “I’ve never seen nonconforming loans priced below conforming loans.” While this is a never seen occurrence, it may become more common and lending companies compete for more loan applicants in a higher interest environment.
People Home Equity wants home buyers and homeowners alike to remember that while mortgage rates are climbing, so are property values and the state of the economy. As the economy improves such as improved productivity, lower unemployment, and rising markets, more wealth is created giving more home buyers and homeowners the ability to afford their home loan. The Federal Reserve Bank offered some consolation on to those still worried about interest rates despite an improving economy. On June 19th, Fed chairman Ben Bernanke stated during a news conference that the Fed may pull back stimulus if “solid economic growth supporting further job gains” coupled with 7 percent unemployment occurred by year end. Currently, interest rates remain artificially held down due to Federal stimulus, readers should know that despite rising interest rates, they are still able to obtain a rate discount on a loan vs. if government funding was not in the picture.
If interest in a jumbo loan please contact a Peoples Home Equity loan at: 615-872-0220.