The time is now to lock in a mortgage especially among those worried for even higher interest rates, and if they decline, refinancing is always an option.
Chicago, IL (PRWEB) September 07, 2013
Loan officers at Peoples Home Equity have been hearing from many anxious mortgage applicants that now may be the wrong time to lock in a fixed mortgage due to rising interest rates. However, the lending company wants readers and prospective applicants to know that interest rates are actually trending at a significant historical discount.
While interest rates declined on Friday, investors and homebuyers alike eyed the fact that rates remain near their annual highs. The 10-year bond has been rallying since May 2nd and due to Friday’s encouraging unemployment report, the expectation is for bonds prices to trend lower and rates to continue higher.
Even though interest rates such as the 10-year bond have more than doubled from July 2012, they still remain far below levels seen in the 1970’s, 80’s, and 90’s. During this 30 year period rates averaged over 6 percent with certain periods, spiking over 7 percent even during the 90’s.
According to MortgageNewsDaily.com the current 30-year fixed rate is 4.77% while a jumbo mortgage is surprisingly cheaper at 4.75%. For those that think a 4.75% mortgage is not affordable, remember once again that the economy is improving, unemployment posted an August decline on September 6th from 7.4% to 7.3%. The housing market is recovering, property values and incomes are rising which can offset the added cost of a higher mortgage rate. Peoples Home Equity reminds anxious prospective applicants that when interest rates were low, the worry was that property values may not increase in value for an extended period of time. The time is now to lock in a mortgage especially among those worried for even higher interest rates, and if they decline, refinancing is always an option.
For more information regarding a low rate mortgage, please contact a loan officer at Peoples Home Equity: 615-872-0220