lock in an FHA mortgage rate now closer to 4% before rates continue their trend higher to what is expected to be over 5%
Chicago, IL (PRWEB) October 02, 2014
Peoples Home Equity was intrigued by Tuesday’s Case/Schiller Home Price Index. In addition, today’s Mortgage Bankers Association weekly report showed that mortgage applications were not so hot but rates dropped refreshingly for prospective borrowers.
On Tuesday, September 30th, spindices.com released its S&P/Case-Shiller Home Price Indices, which showed a national basis rising 0.58%. Every major city of the 20-city composite experienced an increase in July expect San Francisco which declined by -0.34%. The San Francisco index, which has been a leader nationwide due to the large money flow of technology titans in the area, seems to have taken a healthy pause. The best performing city for July was New York City at 1.1% followed by Detroit at 0.92%. On a year-to-date basis San Francisco remains the top performer of the year at 8.06% followed by Seattle at 7.27% and Portland at 6.4%.
On Wednesday, October 1st, the Mortgage Bankers Association (MBA) announced that home loan applications fell 0.2% for the week ending on September 26th. Fortunately for prospective applicants “30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.33 percent from 4.39 percent.” Jumbo loan rates “decreased to 4.28 percent from 4.30 percent” and FHA loans also "fell to 4.07 percent from 4.08 percent, with points decreasing to 0.04 from 0.09.”
Rates are expected to resume higher especially since the Federal Reserve is ending its quantitative easing program next month. However, Peoples Home Equity believes the current fall in equity markets will balance out any rates increases with a flood of investors racing to safety in bonds. The more bonds purchased on the market the lower rates fall. Peoples Home Equity encourages first-time home buyers to lock in an FHA mortgage rate now closer to 4% before rates continue their trend higher to what is expected to be over 5%. To get started on a mortgage pre-approval, visit PeoplesHomeEquity.com