The time to apply for a mortgage and purchase a home is now since rates are still in a temporary holding pattern.
Chicago, IL (PRWEB) April 30, 2014
Existing-home sales which were announced on April 22, showed little change in March, according to the National Association of Realtors. There was a 0.2 percent decline for all sales of existing homes - single-family homes, condos, co-ops and town homes. The Federal Savings Bank was disappointed to see that sales fell from 4.60 million in February to a seasonally adjusted annual rate of 4.59 million in March. Year over year, the decline was 7.5 percent from March 2013's 4.96 million units. Despite the minor setback, NAR Chief Economist Lawrence Yun predicted that sales activity will pick up in the coming months.
"With ongoing job creation and some weather delayed shopping activity, home sales should pick up, especially if inventory continues to improve and mortgage interest rates rise only modestly," Yun said. The Federal Savings Bank agrees, in fact, housing activity is already picking up in the Midwest as the temperatures pick up.
As shown on MortgageNewsDaily.com rates seem to be in a holding pattern due to remaining sentiment surrounding sluggish home sales. Since April 2nd, rates have actually declined from 4.56% to 4.37% on April 30th. The Federal Savings Bank does not expect rates to continue trending neutral to negative for long as the Federal Reserve is tapering back its successful asset purchase program every month. The intentional effect of this policy is to have higher interest rates, which is why mortgage rates have been rising since 2012 in anticipation of Fed policy which is occurring now.
The time to apply for a mortgage and purchase a home is now since rates are still in a temporary holding pattern and sluggish sales are holding prices from surging. Time is running out housing activity is already picking up this spring and both rates and prices may not remain affordable for long.
For information about low-cost mortgage options, contact the Federal Savings Bank, a veteran owned bank.