The rate matters!
Chicago, IL (PRWEB) June 04, 2014
Mortgage rates climbed for the 3rd consecutive day on Monday, June 2nd. The uptrend in rates which began in 2012 may have resumed given Monday's movement. Peoples Home Equity believes bond prices and mortgage backed securities alike are falling with their rates rising in anticipation of Thursday’s ECB meeting rate cut for Europe. This move would calm some anxieties over Europe’s economy yet the jobs report will be announced just a day later on Friday, June 6th.
MortgageNewsDaily.com showed that the rate on a 30-year fixed mortgage rose from 4.12% on Friday, May 30th, to close at 4.16% this Monday. The rate on a 30-year fixed mortgage has now only declined twice in the past 11 trading days. Peoples Home Equity thinks prospective applicants should recognize the current risks associated with waiting and watching rates float rather than getting locked into a great fixed rate mortgage now. With summer approaching, home sales are only expected to continue higher. If Friday’s unemployment report is positive on the labor market, both equity and home prices may increase further in a short period of time. Peoples Home Equity does not force anyone to purchase a home, but the lender always makes sure its prospective mortgage applicants are aware of current events that could affect rates. Buyers know that higher mortgage rates means thousands, if not, hundreds of thousands, of dollar more spent on interest for their loan; the rate matters! Speaking of current events, be sure to pay attention to the Mortgage Bankers Association’s weekly mortgage application survey numbers to be released Wednesday morning. Applications have risen for 3 of the past 4 weeks and another rise, though smaller (0.67%), is expected. For those thinking to apply for a home loan, doing so now is good idea to lock in a competitive fixed rate before interest rates may jump higher based on positive economic news.
If interested in securing a competitive, lower rate mortgage, consider speaking with a Peoples Home Equity loan officer today details at: 262-563-4026.